UPDATE 3pm: A yacht stranded about 200 nautical miles off Port Stephens is now being towed back to Coffs Harbour, police said.
A four-man crew from the Newcastle water police reached the yacht about 12.30pm on Sunday.
Water police were contacted by the Australian Maritime Safety Authority (AMSA) about 7pm on Saturday after an EPIRB (Emergency Position Indicating Radio Beacon) was activated by the owner of a 16m sloop, 200 nautical miles offshore.
Police were advised there was mechanical problems with the yacht’s engine.
Water police left Port Stephens about 11pm on Saturday.
A Sydney man, 46, - the only person on board - is not believed to have been injured.
EARLIER: A RESCUE operation is currently underway for a yacht stranded about 200 nautical miles offshore at Port Stephens.
The yacht, a 16-metre sloop, activated an emergency beacon after suffering mechanical problems with its engine, about 7pm on Saturday.
At 11pm Water Police set out in the 17-metre police launch Intrepid.
The vessel is expected to reach the stranded yacht before noon on Sunday.
It’s still unclear how long it will take to tow it back in the heavy conditions.
The Australian Maritime Safety Authority deployed an aircraft about 2am on Saturday and sighted one person aboard the yacht.
However it is possible there are two people on board.
It’s believed the yacht was being sailed to New Zealand.