Australian warship seizes 427 kg of heroin

A boarding party from HMAS Melbourne has found 427 kilograms of heroin in a hidden compartment on a boat intercepted in the Indian Ocean.

HMAS Melbourne has seized 427 kilograms of heroin from a boat intercepted in the Indian Ocean. (AAP)

An Australian warship has seized 427 kilograms of heroin from a smuggling vessel it intercepted in the Indian Ocean.

Chief of defence force joint operations Vice Admiral David Johnston said last Friday a boarding party from HMAS Melbourne found the drugs, worth an estimated $126 million, in a hidden compartment on the suspect fishing vessel.

In a statement HMAS Melbourne’s ommanding officer, Commander Bill Waters, said the drugs had an estimated Australian street value of at least $126 million.

"In 2015, Australian ships have seized nearly two tonnes of heroin while deployed to Middle Eastern waters,” he said.

“This latest intercept shows our continuing vigilance is essential in the fight against terrorism."

The statement said the Melbourne's crew saw the vessel operating suspiciously and interviews with the crew led to the discovery of the drugs.

The heroin was analysed and destroyed.

Many of the illegal drugs intercepted by Australian ships originate in Afghanistan and Pakistan and their sale generates income for terrorist organisations.