A stricken, fire-hit trawler owned by Greenland's Polar Seafood sank on Wednesday night, Greenlandic Broadcasting Corporation's Kalaallit Nunaata Radioa reported.
The fire broke out Monday on the trawler as it was fishing off Qasigiannguit.
The vessel sank very quickly after it began to take on water, the publication said, citing local police.
The trawler, named Polar Assik, had 10 crew members on board but all were safely evacuated onto other vessels.
Officials are now assessing whether or not to attempt to raise the vessel after finding significant volumes of oil being spilled into the ocean, stretching a far as four nautical miles from the site of the vessel.