A group of school students are among 22 people rescued from a boat that caught fire in waters off the Victorian seaside town of Queenscliff.

Emergency crews were called to the fire off the coast of Queenscliff about 8.30am on Thursday.

A ferry and a Parks Victoria vessel went to the aid of the people on the boat and all on board were rescued before police arrived.

No one was injured.

It is believed the students were from Melbourne Girls Grammar School on a geography excursion.

A witness, who gave her name as Dianne, told Melbourne radio 3AW she was on the Sorrento to Queenscliff ferry detoured to rescue the passengers.

“They’re all in good nick and they’ve all got their life jackets on,” she said.

Police believe the engine bay caught fire and will tow the vessel to shore.

The exact circumstances surrounding the fire are yet to be determined, but it is not being treated as suspicious.

-with AAP