Image: Twitter

Four people are lucky to be alive after their boat burst into flames out on the water in Sydney’s east.

Maritime Rescue services rushed to retrieve the group after they raised the alarm at Watsons Bay.

It’s believed a fire broke out within the engine of the vessel, which has now been extinguished.

RMS Acting Executive Director Roger Weeks tells Luke Grant the four people responded brilliantly.

“They’ve done everything right as soon as they saw there was a problem on board their boat.

“They called New South Wales Maritime for assistance and then put on their lifejackets and as soon as they saw the fire fully take hold, they jumped overboard.”

Mr Weeks says the group spent about 10 minutes in the water.

Click PLAY below to hear the full interview

Boat fire at the northern end of #WatsonsBay @SkyNewsAust pic.twitter.com/vFdgtBq8Ej

— Matthew Karstunen (@MKarstunen) January 15, 2019