Northern Territory Police are conducting search and rescue efforts to locate three people who failed to return from a fishing trip on Friday afternoon.

It was reported to police that two men and a youth had travelled to Leaders Creek with plans to fish at the Vernon Islands and due to return home that evening.

Police have actively been searching the area via helicopter and boat, but are yet to locate the party.

It is believed the trio are travelling in a boat similar to the one pictured, but with grey coloured bimini (canopy) and Yamaha motor.

Police encourage anyone out on the water in the area of Melville Island, Vernon Islands or Cape Hotham who may have sighted this boat or have any information on its whereabouts to contact police on 131444 (Case 8822125 refers).