Yacht burns and sinks off NSW coast

A yacht has been destroyed by fire and sunk in waters off NSW's central coast.

Emergency crews who were unable to save the boat are now trying to contain a diesel spill with booms.

The 10-metre fibreglass yacht was engulfed in flames when firefighters arrived at Fishing Point at Buttaba near Lake Macquarie just after 5am on Wednesday.

The fire crew used another boat to get to the burning yacht, which was about 110 metres offshore, to try and extinguish the fire.

No one is believed to have been on the yacht, Fire & Rescue says.