A mysterious destroyed temple has been discovered in the ruins of an ancient Egyptian city that sunk into the sea some 1200 years ago.

The sunken city of Heracleion – also dubbed the "Egyptian Atlantis" - was lost in the waters off Egypt's north coast for centuries until it was first uncovered in 2000.

Constant studies have been undertaken at the location since the discovery, with researchers recently uncovering the remains of a Greek temple and treasure-laden ships at the underwater site.

An ancient statue pulled from Heracleion as part of the research. Picture: Franck Goddio/Hilti Foundation/Christoph Gerigk (Supplied)

Franck Goddio with the intact engraved Thonis-Heracleion statue. Picture: Franck Goddio/Hilti Foundation/Christoph Gerigk (Supplied)

Bronze coins from the reign of King Ptolemy II (283 to 246 BC), ancient columns and 2000-year-old pottery were also among the astonishing new finds.

Heracleion was said to be Egypt's main international trading port, but no trace of the lost city had been found until it was discovered in 2000 by the European Institute for Underwater Archaeology and Franck Goddio.

“Its name was almost razed from the memory of mankind, only preserved in ancient classic texts and rare inscriptions found on land by archaeologists,” explained researchers.

Franck Goddio and his team watch the rise to the surface of a colossal statue of red granite Picture: Franck Goddio/Hilti Foundation/ Christoph Gerigk (Supplied)

Earthquakes and tsunamis were believed to have battered the ancient port, causing buildings to collapse before rising sea levels gradually swallowed the city until it was abandoned in the 8th Century AD.

Underwater archaeologists used a high-tech scanning device to uncover, map and excavate parts of the city, which is found 6.5 kilometres off today’s coastline.

Before bringing it to the surface, archaeologists Franck Goddio and his team inspect the colossal red granite statue of a pharaoh of over 5 metres height, weighing 5.5 tons, and shattered into 5 fragments. Picture: Franck Goddio/Hilti Foundation/Christoph Gerigk (Supplied)

One of the finest finds in Abukir Bay is the remarkable dark stone statue of a 3rd century Ptolemaic queen, very probably Cleopatra II or Cleopatra III, wearing the tunic of the goddess Isis. Picture: Franck Goddio/Hilti Foundation/Christoph Gerigk (Supplied)

“The objects recovered from the excavations illustrate the cities’ beauty and glory, the magnificence of their grand temples and the abundance of historic evidence: colossal statues, inscriptions and architectural elements, jewellery and coins, ritual objects and ceramics - a civilization frozen in time,” explained researchers.

“The quantity and quality of the archaeological material excavated from the site of Thonis-Heracleion show that this city had known a time of opulence and a peak in its occupation from the 6th to the 4th century BC.”

Underwater archaeological research the city continue, with Franck Goddio estimating only 5 per cent has been discovered.