A teenager and her brother have captured a close encounter with a shark while spearfishing off the NSW South Coast. 

The footage shows the shark tracking the 16 and 13-year-olds near Bulli Point.

Surf Life Saving Illawarra posted the footage on their Facebook page.

Luanne Freeman from Surf Life Saving Illawarra was surfing nearby and heard the teens screaming.

“I had my four-year-old and my 8-year-old out on their nipper boards about 150 metres from this incident,” she said.

“For me as a parent putting my kids out in the water in that position, it’s a bit of a wake-up call and quite scary.”

Watch the footage below: