The body of a five-year-old boy has been found by police divers after a boat capsized off the NSW coast near Wollongong.

Police say the boat with four people aboard capsized near Bulli Point about 6.20pm on Saturday.

Two men, aged 23 and 31, were pulled from the water about 8pm by a rescue helicopter crew.

They were taken to Wollongong Hospital in a stable condition and have since been released.

A search for the boy and a 28-year-old man resumed on Sunday morning after being suspended at midnight.

The capsized boat was towed into Port Kembla harbour on Sunday morning where police divers found the body of the five-year-old boy.

The search continues for a 28-year-old man missing after a boat capsized off Bulli Beach last night. The upturned vessel was found this morning and towed to Port Kembla Harbour, where police divers located a child's body. https://t.co/5uDmW1pO1H #7NEWS pic.twitter.com/ghATTvccTS

— 7NEWS Sydney (@7NewsSydney) June 7, 2020

The search continues for the missing man.

NSW Ambulance Inspector Norm Rees described it as a long-weekend disaster.

“It’s absolutely heartbreaking for everyone involved. All the emergency services are impacted by the tragedy, but our hearts go out to the family,” he said in a statement on Sunday.

“We are doing everything we can, we have a number of resources here who can provide the comfort and care needed.”

NSW Police Detective Chief Inspector Brad Ainsworth said at this stage the search for the 28-year-old man will likely be a body retrieval.

“Unfortunately he’s been in the water for 12 hours-plus,” he told reporters on Sunday.

“I would love to be wrong but I would be thinking at this stage we would be just hopeful of retrieving (a body).”

-AAP