27 missing after Philippine boat sinks

Coastguard spokesman Commander Armando Balilo told local media that 46 people had been rescued from the waters.

There were no reports of bad weather conditions in the area and the cause of the collision is not yet clear.

The incident comes as thousands of people in the Philippines travel home for the Christmas period.

The passenger ferry was on its way to Lubang island southeast of Manila.

"This is a small vessel with a single wooden hull. Water rushed in and the vessel sank not long after the collision," coastguard Commodore Luis Tuazon told local radio.

The other vessel - a 369-tonne fishing boat named Nathalia - was damaged but still afloat, said Commander Balilo.

It had been on an extended fishing trip in the Turtle islands in the southern Philippines and was returning to the Navotas port in northern Manila.

"Some of those rescued are now aboard the Nathalia," Mr Balilo said.

He said three coastguard ships and a plane had been dispatched and at least eight other ships in the area had also been asked to help hunt for survivors, AFP news agency reported.