A large-scale water search for a man who went missing after his boat started sinking has entered its third day.

On Sunday night, two people on-board a yacht off the coast of Fraser Island in Queensland’s southeast radioed for help, reporting that their vessel had started to take on water.

An air and water search began off Sandy Cape in the island’s northern tip to locate the couple, and at about 11.30am on Monday, a woman was pulled from the water by the RACQ LifeFlight helicopter.

The woman, aged in her 20s, reportedly saw the vessel sink but had been wearing a lifejacket and was able to stay afloat surrounded by debris.

She was flown to the Bundaberg Hospital to receive treatment for fatigue, but emergency services were unable to locate the man.

The search resumed on Tuesday, with water police, aircraft and Volunteer Marine Rescue teams looking for the man.