WATCH: Shark feeding frenzy just metres from crowded shoreline

Hundreds of people have caught the rare sight of a shark feeding frenzy just metres from the shore in Fingal Bay, north of Newcastle.

Drone footage has captured a bird's eye view of crowds of people on the beach watching at least eight sharks feeding on thousands of fish in crystal clear waters.

People can been lingering dangerously close to the water. Photo: Youtube / Damian Hurley

The amazing sight is the result of a huge school of mullet moving into the bay attracting grey nurse sharks forcing authorities to close the beach to swimmers.

The footage, uploaded to Youtube by Damian Hurley, shows hundreds of people, including children, in almost touching distance of the sharks.

The sighting comes in the same month a man suffered injuries to his leg in a reported encounter with a shark at nearby One Mile Beach in Port Stephens.

There have been several reports of shark encounters recently including one in Victoria where a group of fisherman fight off a shark with a broom, and several in Western Australia, including the fatal shark attack off Esperance last week.

The Department of Primary Industries is carrying out daily aerial patrols of the bay, which is closed to swimming until further notice.