Six months after it ran aground, the back section of the Rena has broken off and has sunk in high seas, but the bow remains on the reef.
Maritime New Zealand confirmed the sinking after flying over the vessel late this afternoon.
Spokesman Ross Henderson said rough seas pounding the Rena had weakened the structure and oil had been seen surrounding the wreck and stretching out for about a kilometre to the north-west.
A wave of more than 12 metres had been recorded at the reef overnight, with winds reaching 50 kilometres an hour.
Swells of eight to nine metres were seen today.