The ship, operating on a popular tourist route from Bergen to the northern regions above the Polar circle, was close to the port of Aalesund in western Norway when a fire started in the engine room, state broadcaster NRK reported.
"There are two people confirmed deceased and the rescue team are searching the boat for more," said a spokesman for the Norwegian police.
The British Consul said there were six British passengers on board.
According to the website of operator Hurtigruten the Nordlys, built in 1994, can carry 691 passengers.
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