A search-and-rescue operation was launched for the missing British skipper and crew of the fishing trawler Ocean Way after it began transmitting a mayday signal early on Sunday afternoon.
In total three people were rescued from the water.
An RAF rescue helicopter was dispatched to the scene while a Norwegian chopper was also sent to help with the search.
The skipper of the vessel is British while the four crew were Filipino, according to reports. A spokesman for the MCA would not confirm if the person who died was a crew member or the skipper.
“This tragedy will be felt by all fishing communities and is a horrible reminder of the dangers our fishermen face day in day out to bring fish to our tables with many paying the ultimate sacrifice,” Scotland's Fisheries Minister Richard Lochhead said.