Police have smashed an alleged drug smuggling syndicate where at least half a tonne of cocaine to the estimated street value of $245 million has been found hidden on a yacht at Lake Macquarie.

At 3pm yesterday, police seized 700kg of cocaine and later charged three men as part of a multi-agency investigation into international drug trafficking by sea.

In August, investigators from the NSW Police Force State Crime Command’s Organised Crime Squad, Australian Federal Police, and the Australian Criminal Intelligence Commission commenced a joint investigation into the importation of cocaine by private vessels.

The men were arrested on the yacht at Lake Macquarie. (NSW Police)

The investigation has also been assisted by the Australian Border Force.

As a result of inquiries, investigators identified a vessel of interest travelling from the South Pacific bound for New South Wales, which was monitored through Australian waters.

The investigation led to the interception of a yacht at Toronto yesterday where 700kg of cocaine was found concealed in the yacht’s hull.

The Catana 42 had sailed from Tahitit.

Three men have been charged in relation to the drug bust. (NSW Police)

In addition, multiple search warrants were executed across the Lake Macquarie area with the assistance of Strike Force Raptor, and further warrants were executed by AFP in Western Australia and Thailand.

Three men, aged 47, 63 and 68, were arrested and charged over the alleged importation.

They were refused bail to face Newcastle Local Court today and will reappear in the same court on January 30 next year.

The maximum penalty for importing a commercial quantity of border controlled drugs is life imprisonment.

Joint investigations are continuing, and further arrests are expected.

NSWPF State Crime Commander Assistant Commissioner Mal Lanyon said the results of recent joint agency investigations were indicative of the seriousness of NSW’s thirst for illicit drugs, particularly cocaine.

At least half a tonne of cocaine was found by police. (NSW Police)

“As we recently highlighted, the Organised Crime Squad – with the assistance of our law enforcement partners both here and abroad – has seized tonnes of prohibited drugs and precursors destined for the streets of NSW,” Assistant Commissioner Lanyon said.

“With every seizure we make, a syndicate is taken down, but the demand remains high, and another organised criminal syndicate is willing to flip the coin and risk it all to try and exploit that demand for profit."

AFP Assistant Commissioner Neil Gaughan, National Manager Organised Crime and Cyber, said the drug-filled vessel had passed through Tahiti before making its way to the East Coast of Australia.

“It is no surprise that criminal syndicates undertake sophisticated attempts that go to great lengths – even crossing oceans in relatively small craft – to import narcotics,” Assistant Commissioner Gaughan said.

The yacht travelled from Tahitit. (NSW Police)