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The Argentinian cruise ship MV Ushuaia, carrying 122 people on board, has run aground in the Antarctic, suffering a puncture in two of its diesel tanks and spilling fuel into the open water.

The incident took place at the entrance to Wilhelmina Bay, near Cape Anna on Thursday at approximately 10am local time. The crew sounded the alarm after two large cracks appeared and the ship began to take on water, the Argentine Navy said.

According to an incident report filed by Steve Wellmeier, executive director of the International Association of Antarctica Tour Operators, it is believed that only a "small amount" of leakage took place before the flooding seawater sealed the tank. An oil spill barrier has been deployed and the area will be monitored for signs of environmental impact.

The Argentinian Navy said the vessel was not in danger of sinking.

The 2,963-tonne Ushuaia was built in 1970 for the US National Oceanographic and Atmospheric Administration (NOAA) and is currently owned by the Ushuaia Adventure Corp.

The vessel is used for tourist trips around Antarctica and regularly departs from Ushaia, the southernmost Argentine city, which is a popular tourist destination for locals and foreign visitors.

Two Chilean navy vessels are said to be en route to the Ushuaia and will take on all of its 122 passengers and crew as a precaution. They will be transferred to Ushuaia.