Three people have died after being swept into the surf at Port Kembla, in the Illawarra region of NSW, this evening.

A group of people were standing on rocks near Hill 60 Lookout when a large wave crashed on top of them and washed them into the water at about 10pm, NSW Police said.

Witnesses sounded the alarm with emergency services launching a rescue operation, later confirming three people deceased following the incident.

Emergency services are continuing to search the area, with the possibility other people may still be in the water.

Local police, NSW Ambulance, rescue helicopters, local lifeguards and Marine Area Command are all on the scene.

Anyone with information about this incident is urged to contact Crime Stoppers on 1800 333 000.