The boy was one of four people on board a boat that capsized off Bulli Point around 6.30pm on Saturday.

READ MORE: 'We're just hoping for a miracle', says family

Two men were rescued on Saturday night but the boy and another man remained missing.

The capsized boat had been towed into Port Kembla harbour on Sunday morning and police divers located the body of the five-year-old boy inside.

The search for the missing 28-year-old man continues.

We depend on subscription revenue to support our journalism. If you are able, please subscribe here. If you are already a subscriber, thank you for your support.