Police and emergency service officials have used four-wheel drives to cross sand dunes and access a stretch of beach where two bodies have washed up north of Newcastle.

The bodies were found, about half a kilometre apart, at a place known as Tin City on Birubi Beach at Port Stephens on Friday afternoon.

A small dingy was found nearby.

Police said the two men, aged 71 and 77, left Brooklyn, north of Sydney, on Thursday on a 26-foot yacht en route for Port Stephens.

They were expected to arrive by midday and were in constant contact with family until 10am, when contact was lost and police were notified.

Local police, water police, helicopters, Marine Rescue NSW and surf life savers formed a search team.

The bodies were found about 3:30pm, police said, in an isolated area only accessible by 4WD.

They have been recovered and taken for formal identification, while a report has been prepared for the coroner.