Over 150 people were rescued but some 200 others were still unaccounted-for.
It was one of the deadliest accidents in recent times during the notoriously perilous Mediterranean Sea crossing from Africa for migrants seeking a new life in the European Union.
"We need only caskets, certainly not ambulances," Pietro Bartolo, chief of health services on the island, told Radio 24. He gave the death toll of 94 but told Sky TG24 he expected that to rise as search operations continued.
Coast guard ships, local fishing boats and helicopters from across the region were combing the waters trying to find survivors, said coast guard spokesman Marco Di Milla. The boat left from Tripoli with migrants from Eritrea, Ghana and Somalia, Di Milla said.
Antonio Candela, the government's health commissioner for Palermo, said 159 people had been rescued, but the boat is believed to have been carrying as many as 500 people, the LaPresse news agency reported.
Lampedusa is closer to Africa than the Italian mainland a mere 113 kilometres off the coast of Tunisia and is the frequent destination for smugglers' boats.
