Police divers locate body of holiday-maker missing after paddleboarding at Crescent Head

The body of Steve Wood, 61, was located and formally identifed after a two-day search operation. (Supplied: NSW Police)

Police divers have recovered the body of a 61-year-old man who disappeared while paddleboarding on the NSW Mid North Coast.

A multi-agency search operation began on Saturday for Steve Wood, who was last seen paddleboarding at Ryans Cut outlet which leads to Killick Beach at Crescent Head.

A body was discovered by Marine Area Command divers in Ryans Cut shortly after 3pm today and has since been formally identified as Mr Wood.

Mr Wood, who was from the Newcastle area, was last seen on the water about 1pm on Saturday. A family member later found his paddle and board, but there was no sign of Mr Wood.

An extensive land and air search took place over the weekend, and on Monday morning State Emergency Service volunteers completed a sweep of the shoreline and banks of Ryans Cut.

Inspector Brad Smith was on scene at Ryans Cut as the search operation continued on Monday. (ABC Mid North Coast: Alexandra Jones)

Police divers conducted a search of the waterway and nearby Killick Beach, assisted by hand-held sonar devices.

Inspector Brad Smith said poor visibility underwater proved a challenge for divers scouring the large body of water, which is currently closed off to the ocean.

"Family members have been here throughout the day ... as time goes on they [became] more distraught," Inspector Smith said.

A team of police divers conducted a thorough search of the body of water where Mr Woods was last seen paddleboarding. (ABC Mid North Coast: Alexandra Jones)