The person who died was one of three people winched from the seas off the Northumberland coast and airlifted to hospital by RAF helicopter rescue teams.
Two more are still missing and the search was continuing through the night tonight with the help of Norwegian helicopter rescue teams.
Rescue: The hunt is continuing for survivors from a fishing trawler that ran into trouble in the North Sea. File
A search and rescue operation was launched for the missing skipper and crew of the fishing trawler Ocean Way after it began transmitting a mayday signal early on Sunday afternoon.
Humber Coastguard watch manager Mike Puplett told The Mirror: 'We are searching approximately 100 miles offshore, east of the Farne Islands.
'That search is involving two rescue helicopters, an RAF rescue helicopter and a Norwegian search and rescue helicopter.
'The first notification we got was about 11.15 this morning and that was through the boat's emergency beacon.
'The search is continuing for the remaining crew members and that will continue as long as necessary.'
The Ocean Way, which sailed out of Tynemouth, had four Filipino crew and a British skipper, the Grimsby Telegraph reported.
After coastguard first picked up on transmissions from the Ocean Way's emergency beacon they unsuccessfully tried to make contact with its skipper.
An RAF rescue helicopter flew to the scene and rescuers managed to pluck two fishermen from the chilly waters at around 2pm.
They found a third man shortly after, but they were unable to keep him alive until reaching shore. The two survivors are being treated at Wansbeck hospital in Ashington, Northumberland.
A spokesman for the Maritime and Coastguard agency said none of the rescued sailors were wearing lifejackets. She said the whereabouts of the boat was unknown and refused to be drawn on speculation it had sunk until the outcome of further investigations.
The Coastguard have been broadcasting mayday relay messages requesting all passing shipping to look out for the missing crew.
Mr Puplett said: 'We will continue searching as long as necessary.'
Scotland's Fisheries Minister Richard Lochhead said: 'I am very sorry to hear about the loss of the Fraserburgh registered fishing vessel the Ocean Way that has tragically resulted in fatalities.
'This is a terrible tragedy and my thoughts are with the loved ones and friends of the crew. This tragedy will be felt by all fishing communities and is a horrible reminder of the dangers our fishermen face day in day out to bring fish to our tables with many paying the ultimate sacrifice.
'I would like to pay tribute to all the personnel involved in the rescue operation.'
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