A Egyptian ferry with about 1,400 passengers on board sank 57 miles off Hurghada in the Red Sea on Friday.
According to Egyptian maritime officials, nearly 100 survivors had been rescued so far.
The Egyptian ship, known as Al-Salam Boccaccio 98, had departed from the Saudi Arabian port of Duba and was due to reach Safaga at 2:30am local time (0600 IST).
However, officials lost radar contact with the ship, and air and maritime rescue teams were mobilized. The boat was also reported to be carrying more than 40 vehicles.
Four Egyptian frigates have been deployed to rescue survivors, Egypt's minister of transport, Mohammed Lutfy Mansour, told CNN shortly before the sinking of the ship was announced.
"The Coast Guard is doing every thing in its power to try to rescue these people," Mansour said.
Maritime sources said at least 100 of those on the ferry belonged from other countries, including Sudanese and Saudi nationals. Among the passengers were pilgrims returning from the annual Haj pilgrimage to Mecca, they said.
Agencies reported that another ferry in the area had received a distress call from Al Salam Boccaccio's captain who said that his ship was in danger of sinking.
United States and British assistance is also on its way after Egypt reportedly accepted their offer for help.
