The ship had been on course for arrival in the Palestinian enclave on Saturday; just five days after Israeli commandos killed nine activists aboard a Gaza-bound aid flotilla in a botched raid that plunged Israel into a diplomatic crisis.
"The situation is we lost all contact with the boat. We assume this was sabotage by the Israelis," said Audrey Bomse of the Free Gaza Movement.
Bomse, legal adviser to the Free Gaza Movement, said earlier this week that the two passenger boats, which were meant to carry journalists, sustained serious technical damage while docked in Greece over the weekend.
The legal adviser reportedly told Army Radio that her movement's goal was not just to bring aid to Gaza, but to send a message to Israel. Activists would not stop sending these ships to Gaza until Israel agree to lift its blockade, the radio quoted Bomse as saying.
It was now unclear whether the Irish and Malaysian activists aboard the ship would turn around or steam on towards the Gaza which is under a crippling Israeli blockade.
Monday's raid sparked worldwide outrage with more massive protests expected on Friday, particularly after weekly prayers in Muslim countries.
In Jerusalem, police restricted access to the flashpoint Al-Aqsa mosque compound and deployed in force in and around the Old City.
Angry anti-Israel protests have been staged across the Middle East and in major cities since Monday's deadly raid, with vast crowds taking to the streets to demand an end to Israel's blockade of the Gaza Strip.
Israel has warned it will stop the blockade-busting bid by Rachel Corrie - a 1,200 ton cargo ship named after a US activist killed in 2003 as she tried to prevent an Israeli bulldozer from razing a Palestinian home.
During a special session held by the forum of top seven government ministers Thursday, Israeli Prime Minister Benjamin Netanyahu said, "We shall not allow the ships to reach Gaza. Not now and not later on. We intend to direct the Rachel Corrie ship to the Ashdod Port and transfer its civilian goods to Gaza following a security check."
"As a result of these threats, we're going to pull Rachel Corrie into a port, add more high-profile people on board, and insist that journalists from around the world also come with us," the Free Gaza movement said.
But Bomse later said the decision couldn't be communicated to those aboard the vessel, who include Irish Nobel Peace laureate Mairead Maguire, 66. "We're hoping communications get turned back on so we can inform them of the decision," Bomse told AFP.
On Thursday afternoon, organizers said the Rachel Corrie was about 250 miles from the spot in international waters the six boats were boarded on Monday.
Irish Prime Minister Brian Cowen has said that the ship must be allowed to reach Gaza and warned of "the most serious consequences" if Irish citizens are injured.
The US administration has so far refused to explicitly single out the Israeli government for blame.
Bulent Yildirim, head of the Islamic charity Foundation of Humanitarian Relief, which spearheaded the Gaza aid fleet, said Israeli soldiers fired indiscriminately when they stormed the Turkish ferry Mavi Marmara on Monday.
Israel rejected a bid by the UN Human Rights Council to set up an investigation.
The Rachel Corrie's trip to Gaza is sponsored by two non-governmental organizations, from Ireland and Malaysia. On board is Irish Nobel Peace Prize laureate Mairead Maguire and former United Nations deputy secretary-general Denis Halliday. Also on board are Malaysians from a group sponsored by the former prime minister of Malaysia.
River to Sea
Uprooted Palestinian
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