The blaze led to a loss of power, with the ship briefly listing but the vessel is again underway under reduced power. Two of the four propulsion engines are operating and the auxiliary engines are also working.

The fire broke out while the 28,500-gt Boudicca (built 1973) was sailing off Casablanca, Morocco at about 04:00 this morning.

Fred Olsen Cruise Lines said the vessel had 784 passengers and 356 crew aboard at the time.

The company said the ship was now fully stable and there was no danger to passengers or crew. “The ship will liaise with the relevant maritime authorities should any need emerge,” a company statement declared.

Earlier reports that passengers were asked to don lifejackets and gather at muster stations were denied by the Boudicca’s master.

The Boudicca is now heading for the Canary Islands at reduced speed.

There is no information on the extent of damage to the vessel. The Wartsila built Boudicca is 42 years old but was refitted in 2011.

The hull insurance of the vessel is led by the Norwegian Hull Club with protection and indemnity cover provided by Skuld.