After being lost for 77 years, an Australian freighter sunk by a Japanese submarine during World War II has been located by maritime archaeologists using CSIRO research vessel the Investigator.

The SS Iron Crown, a 100m long ore freighter, was sunk by a Japanese submarine on 4 June 1942 while travelling through Bass Strait with a cargo of manganese ore. The heavily loaded freighter was hit by a torpedo from the submarine and sank within 60 seconds.

Peter Harvey, a maritime archaeologist with Heritage Victoria said it is one of Victoria's worst shipwrecks in terms of loss of life.

"The Iron Crown is historically significant as one of only four World War II shipwrecks in Victorian waters and is the only ship to have been torpedoed by a submarine in Victorian waters," Mr Harvey said.

"There were 43 crew from the Australian Merchant Navy on board the ship and 38 lost their lives in the attack. Locating the wreck after 77 years of not knowing its final resting place will bring closure for relatives and family of those that were lost at sea, as well as for Australia's maritime community."

The wreck was located about 100km off the Victorian coastline south of the border with NSW

Imagery from the camera survey clearly shows the intact bow of the ship, with railings, anchor chains and both anchors still in position, as well as other structures on the deck.

All historic shipwrecks (shipwrecks greater than 75 years old) in Australian waters and any relics or artefacts from those wrecks are protected under the Historic Shipwrecks Act 1976.