UPDATED 8.38am: A third body has been recovered from the wreck of the FV Jubilee.

Navy divers have been scouring the wreckage near Akaroa for the past two days.

They believe they've now found the bodies of the three crewmen - fishermen Jared Reese Husband, 47, of Timaru, Paul Russell Bennett, 35, of Motueka, and Terry Donald Booth, 55, of Nelson - who were on board the ship when it sank.

Sergeant Phil Simmonds said formal identification has still to be carried out.

"Police believe that it is the third crewman on board the FV jubilee when she sank. Unfortunately police will not be in a position to confirm the identities of the crewmen recovered from the wreck until this afternoon at the earliest."

Two bodies were brought up to the surface by the navy's diving squad on Monday from the vessel.

The fishing boat was found sunk off the Canterbury coast after its crew sent out a distress signal from a brutal storm on October 18.

The wreck is 40m underwater.