Wreckage found 50 metres underwater is believed to be that of a fishing vessel missing off the Fiordland coast since Saturday.
Two people were on board The Governor: skipper Kevin Cosgrove, 60, of Dobson, and 16-year-old crewman Nirvana Drew Reynolds of Blackball.
They contacted another boat about 11.30am on Saturday to say their net was snagged near Yates Point, about 9km from shore, north of the Milford Sound mouth.
Southland police say wreckage has been located 2.5km from Yates Point.
However, bad weather is hampering efforts to conduct a safe dive.
Senior Sergeant Cynthia Fairley says the swell on Monday was 4m near Yates Point, and poor weather is expected this week.
Police are scaling back the search and plan to send divers in on Saturday if the weather is fine.