All those on board were safe and would be transported back to land shortly.
A Coastguard spokesperson said they assisted by transporting local firefighters from Howick.
The launch was sitting to the east of Browns Island/Motukorea.
Smoke was seen billowing from the vessel on the Hauraki Gulf weather livestream. Photos showed large orange flames.
The Coastguard spokesperson said the pair were already safe in their dinghy when the police and Fire and Emergency arrived.
They said the Auckland Harbourmaster also responded to the incident.
The harbourmaster and Fire and Emergency have been approached for comment.
More to come
