Emergency crews have been working through the night around the wreck of the Costa Concordia, but fears are growing for the 29 people still missing.
Six people are known to have died after the Costa Concordia crashed into rocks off Italy's west coast on Friday night.
But local coast guard Marco Brusco said there was still a "glimmer of hope" that survivors could be found.
The ship's owners blame the captain, saying he changed the ship's course.
Italy says it will declare a state of emergency over the capsized boat, and provide help to try and stop an environmental disaster.
The Italian environment minister said liquid was leaking from the ship, but it's not clear if it's fuel.
The missing are thought to include four crew members, as well as passengers from America, Germany, France and Italy.
The ship's captain, Francesco Schettino, has been arrested and a judge is due to decide if he should still be held.
Captain Schettino said he'd done nothing wrong, saying the rocks the ship hit were not marked on his nautical charts.
The ship, carrying more than 4,200 people, was on the first night of a cruise when it ran aground in calm conditions.
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