The Antigua Barbuda registered cargo vessel EMS Majestic, owned by German shipping company Fehn Ship Management, started sinking on Sunday some 13 miles south east of Eastbourne, in the Dover Strait, the UK Maritime and Coastguard Agency informed.
The UK Coastguard received the mayday call from the 1996-built vessel at 7.09 pm local time, saying that they were taking on water and sinking.
EMS Majestic reportedly had seven crew members on board at the time of the incident.
For safety reasons, two non essential crew members were airlifted from the vessel by Coastguard helicopter.
A number of vessels transiting the area responded to the mayday call to provide assistance as required.
Coastguard rescue helicopters based at both Lee on Solent and Lydd have been sent to the scene along with Eastbourne RNLI lifeboat.
The 3,433 dwt EMS Majestic received assistance from tug Thor Frigg, and is currently under tow to a safe haven in Southampton, MCA said.