There are growing fears a diver missing after a wreck dive off Point Lonsdale at the weekend may have been taken by a shark.

Police say tests on dive equipment found on the ocean floor in the area where 42-year-old Karen Lee disappeared on Saturday appears to have been damaged by a shark.

It still hasn't been confirmed if the gear belongs to the experienced diver from Preston but Inspector Gary Bruce says an underwater camera found in the same spot has been confirmed as being the property of the Preston woman.

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But the dive group Karen was with when she vanished says there was no sign of a shark while they were in the water, and rescue teams say there is no evidence of shark activity in the area.

The search for Ms Lee has now been called off.

Picture: SES crews comb the beach at Ocean Grove yesterday (P Mobbs)