Jakarta: More than 130 Sri Lankans believed to be heading for Australia and New Zealand have been intercepted by Malaysian authorities, smashing a large people smuggling ring that has been operating for over a year.

National police chief Mohamad Fuzi Harun says authorities halted the tanker on Tuesday off the coast of southern Johor state.

"With these arrests, the Royal Malaysia Police has successfully foiled a large and cunning human smuggling syndicate," Mr Harun reportedly said, according to Channel News Asia.

"This syndicate has been operating since mid-2017 and has international connections across Sri Lanka, Australia, New Zealand, Indonesia and Malaysia," he added.

The modified tanker carrying the Sri Lankan immigrants included 98 men, 24 women, four boys and five girls.