Seven people have been killed and 21 others were missing feared dead after a collision between a small tourist boat and a Viking River Cruises river vessel in Hungary.

The accident happened on Wednesday night in the Danube River in Budapest.

The Hableany boat was carrying 33 South Korean passengers and two Hungarian crew, AP reported.

Torstein Hagen's Viking said its river cruiseship Sigyn had been involved in the incident.

The BBC cited police as saying on Friday that the 64-year-old Ukrainian master of the Viking ship was arrested as a suspect over reckless misconduct in waterborne traffic leading to mass casualties.

Hopes have faded that any of the 21 people missing will be found alive.

A criminal investigation has been launched.

South Korea is sending its own rescue workers to Hungary to support rescue efforts.

Seven people were rescued.

AP reported that both vessels were travelling in the same direction when the accident happened.

Turned in front of vessel

“Both ships were heading north ... and when they arrived between two pillars of the Margit Bridge, for some reason the Hableany turned in front of the Viking ship. As the Viking comes into contact with it, it overturns it and in about seven seconds, as it turned on its side, it sank,” police spokesperson Adrian Pal told reporters.

Viking said in a statement on Thursday that Sigyn was near a Hungarian tourist boat “when it was involved in an incident” on the river at 9pm local time.

It said no one aboard the Viking ship was injured, and that it is cooperating with the authorities.

Viking hit the headlines in March when its 944-berth Viking Sky (built 2017) lost engine power off Hustadvika, Norway, prompting the airlift of 479 passengers to land.

About 20 others were taken to hospital for injuries.