The boat with 56 Egyptian and Syrian nationals was heading to Italy from Egypt, Al-Ahram newspaper reported.
The Egyptian Coast Guard rescued one person, while two others drowned.
The rescue team was still searching the missing ones.
All the rescued people will be arrested for investigation, a security official said.
A broker has bargained the illegal immigrants and asked them to give him about USD 5000 in order to help them immigrate to Italy.
He took about USD 1300 as a deposit and was supposed to get the rest of money after they arrive, the paper said.
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