Emergency services were called to Blue Fish Point at Manly at about 7.40am.
They were told a 33-year-old man had fallen from the rocks and into the water, while fishing with a group.
Police began an extensive search operation, using police divers, the Toll Ambulance rescue helicopter, and personnel from Marine Rescue Australia NSW and Surf Life Saving Australia.
At about 10.30am, police pulled a body from the water nearby.
It’s believed to be that of the missing man.
A report will be prepared for the coroner.
