More than 350 people are feared missing in a ferry accident in Papua New Guinea (PNG)'s northeast, the Australian Associated Press (AAP) reported on Thursday.

PNG's National Maritime Safety Authority (NMSA) said the ferry traveling between the coastal towns of Lae and Kimbe West sent a distress signal at about 8:30 a.m. (Australian Eastern Daylight Time) on Thursday.

"The reports have come back on that, we're getting reports," a spokesperson said.

NMSA rescue coordinator Fred Siroi said a public statement would be made later in the day.

VietNamNet/Xinhuanet