A WOODEN boat off the state's East Coast became engulfed in flames on Tuesday night after an electrical problem.
The vessel, named ``Classic'', was south of Freycinet when it caught fire about 6.10pm.
Tasmania Fire Service was alerted to flames in its hull about 9.30pm, but the service was unable to attend.
The boat eventually sank in the Shouten Passage about 11.30pm, despite attempts from members of the PV Van Diemen to extinguish the fire.
Four people were onboard when the fire started, but none were injured.
Police are investigating.