UPDATED 12.49pm: The tough decision has just been made to break the stranded MV Tuhoe into pieces rather than re-float it.

The 96-year-old ship has been trapped on a sandbar in the Waimakariri River since Sunday.

After a lengthy meeting this morning, crews have started to cut away at the sinking ship.

Regional Harbourmaster Jim Dilley said it suffered huge damage overnight.

"Just completely broken her back now, a lot of damage inside the vessel, she is unable to float. She is flooding with water so the vessel is completely compromised."

"The Trust has made the very difficult decision to break the vessel up, and we're now starting that operation."

MV Tuhoe Kaiapoi Riverton Trust chairman Philip Redmond said after speaking to experts this morning, it was the only decision they could make.

"That was one of the hardest decisions I think I personally have had to make and it was a very hard decision for the trustees.

Dilley said they're working to try and minimise any environmental impact that is expected as chainsaw crews begin cutting the boat.

"We're removing the last of the oil at the moment. There's vehicles on the beach, there's people coming down to see the boat, the work we're doing, all of that comes down to a very small environmental impact but we'll be doing absolutely everything to make sure that is as minimal as possible."

The mast, wheelhouse and other memorabilia are being recovered from the stricken MV Tuhoe.

The 96-year-old boat is an icon in the Canterbury township of Kaiapoi.

Redmond said parts of the boat will be returned to them

"So we are hoping given time we'll be able to have an exhibit and certainly show the vessel, not as it was but some parts of it."