Divers from an American company believe they have found the remains of one of the greatest British sailing ships ever lost at sea, a British newspaper reported on Sunday.

HMS Victory, the forerunner of Admiral Nelson's flagship of the same name, went down in a storm near the Channel Islands between France and Britain in 1744 with her 1,150 crew.

Divers from Florida-based Odyssey Marine Exploration claim to have discovered the wreck, but it remains the property of the British government and the company would need permission to raise artefacts, the Sunday Times said.

The Victory is prized by salvagers because it was carrying 100 brass cannons, thought to be engraved with dolphins and the monogram of King George II.

A Ministry of Defence spokesman said it was aware of the company's claims to have found the ship, but its remains were "sovereign immune".

"This means that no intrusive action may be taken without the express consent of the United Kingdom," the spokesman said.

Victory was launched in 1737. Seven years later, Admiral John Balchin was leading his fleet home from a mission in Portugal when the vessel became caught in a violent storm.

The ship was wrecked off the island of Alderney near rocks called the Casquets, a renowned graveyard for sailing ships.