Passengers on an Australian cruise ship that ran aground off the coast of Papua New Guinea will fly out of the country on a charter flight after efforts to refloat the vessel failed.

The Coral Adventurer struck a reef on Saturday, two months after the death of a passenger allegedly left behind by the company on a Great Barrier Reef island.

About 120 people, including 80 passengers, were aboard the Cairns-based ship when it struck the coral reef about 90 kilometres from Lae, PNG's second-largest city and the capital of Morobe Province.

The Coral Adventurer had more than 120 people aboard when it hit a reef at Dregerhafen Point, Papua New Guinea. (Supplied: Jurgen Ruh)

The province's governor told the ABC the Coral Adventurer ran aground while using a route known for its "high reef".

Local authorities said attempts to free the vessel were unsuccessful, and the ship's operator, Coral Expeditions, announced on Monday it would end the tour a day before its scheduled finish and fly passengers to Australia.

It is understood they will likely fly to Cairns on a date still to be determined.

The Coral Adventurer is one of three small cruise ships run by Coral Expeditions. (ABC News: Conor Byrne)

A spokesperson for the company said there were no injuries to passengers or the 43 crew.

"To date, initial inspections indicate no damage to the vessel, with further comprehensive inspections of the hull and marine environment to be conducted as standard procedure once the vessel is refloated," they said.

Governor says locals avoid 'very high' reef 

Local police told the ABC's Pacific Beat the ship was transiting through Morobe, Madang and Sepik provinces and passing Dregerhafen Point at 5:30am local time when it hit strong sea currents and ran aground.

Morobe Provincial Police Commander Chief Superintendent Samson Siguyaru said a tugboat was unable to pull the cruise ship from the reef on Sunday.

Morobe's provincial governor, Rainbo Paita, said the Coral Adventurer took a route not usually taken by local operators.