The shark, estimated at over three metres, was caught in beach nets and found by a shark contractor.

It was one of two dead tiger sharks found in the netting, each measuring 3.8 metres, a Department of Primary Industries spokesman said.

Read more: Watch as great white shark circles a fishing boat off Bulli Beach

A third tiger shark, measuring 3.2 metres was found alive and released.

"Each net is checked every 72 hours at a minimum - more often when conditions allow - and all marine life is released alive where possible," the spokesman said.

Onlookers rushed to the water's edge when they saw the animal being hauled aboard the boat at Austinmer on Monday morning.

One eyewitness told the Mercury he had just been surfing and came in for a drink of water - he was about to return when he saw the commotion.

Surfers said the shark looked like a great white, with dark grey on its back and bright white underneath.

Julian Pannell was surfing and had stopped for a drink when he saw the commotion.

"I saw it dangling off the boat, beside the boat," he said.

"It was massive, like bigger than 3m.

"I probably won't get back in for a while."

The shark was too big to be fully lifted out by the boat's winch; its tail reached the frame while the head was still in the water.

Onlookers said the boat was tipping to the side with the shark's weight, and even when dropped into the hull, the head still was hanging over the edge.

Austinmer is one of the Wollongong beaches where shark mesh is deployed to deter the super-fish from the popular swimming area.

Meanwhile, the "danger shark" signs placed near Bulli Beach have been removed by Wollongong City Council after a surveillance helicopter spotted no shark activity.

"We ask beach users to continue to be careful should they return to the water, and to be mindful of conditions particularly in areas where there is significant bird activity in the water as this indicates schools of fish, which can attract sharks," a council spokeswoman said.

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.