This is the dramatic moment shocked tourists watch as a superyacht catches fire in the south of France.

Footage shows the burning 135ft Sea Lady II as holidaymakers scramble around the marina in Saint-Tropez on Thursday evening, July 10.

Smoke was first reported shortly after 8 pm. The blaze began at the bow and spread to the vessel's lower decks.

Two crew members were rescued after suffering from smoke inhalation. By midnight, firefighters had brought the worst of the fire under control.

A fire department spokesman said that nearby yachts were relocated and anti-pollution barriers were deployed in the water as a precaution.

The cause of the fire remains under investigation.

Built in 1986 by W.A. Souter & Sons, Sea Lady II was designed by Don Shead Yacht Design, with interiors by Frederic Mechiche.

The superyacht can accommodate up to 10 guests in five staterooms. It remains unclear whether any other individuals were aboard at the time the fire broke out.

Sea Lady II features an aluminium hull and superstructure and is powered by twin Caterpillar engines, with a cruising speed of 12 knots and a top speed of 16 knots.