A fishing trawler caught fire prompting two passengers to jump overboard in Taiwan on Sunday.

The vessel was engulfed in flames, sending thick black smoke into the sky as it burned off the coast of Toucheng Township in Yilan County at around noon on January 14.

Coast guards were deployed to douse the blaze and rescue the personnel following reports from locals who saw the plumes from their houses on Guishan island.

Li Boyi, deputy captain of Suao Coast Guard: 'When we arrived at the scene, the passengers had already jumped into the sea because the fire was so intense. We rescued them immediately when we saw them.'

Local media reported that the Australian-flagged boat was almost completely burnt.

Authorities were still investigating the cause of the fire.