Skandia continues to lead the Sydney to Hobart yacht race.

Skandia leads the race for line honours from New Zealand supermaxi Zana by less than two nautical miles as the boats move to within 200 miles of Hobart.

The two 98-footers were just over 20 nautical miles north of Eddystone Point, on the north-east tip of Tasmania, at 0300 (AEDT) on Sunday.

The boats should reach Hobart at about 8pm on Sunday.

Earlier Sunday Nicorette retired from the race.

Skipper Ludde Ingvall advised race officials that welds in supporting brackets on each side of the canting keel had cracked, causing damage to the adjacent carbon fibre hull structure.

The boat turned around and was expected to arrive in Eden by midday on Sunday.

Nicorette had been in fourth place behind Skandia, Zana and Grundig AAPT in the race for line honours.

The Swedish maxi won line honours in 2000.

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