Hannah Lynch, 18, is the subject of tributes after what are thought to be her remains were found by divers among the debris of a luxury boat that sank off the coast of Sicily.

Seven people lost their life when the luxurious boat Bayesian capsized in an unusual storm off the Italian fishing village of Porticello, east of Palermo; Hannah was the final person missing.

She has been called a "warm and beautiful soul" by friends, and her "sky-high intellectual ability" by teachers.

Earlier this week, the body of her father, software entrepreneur Mike Lynch, was found in the shipwreck.

The family released a picture of the two on Friday.

In a statement a spokesperson said: "The Lynch family is devastated, in shock and is being comforted and supported by family and friends."

"Their thoughts are with everyone affected by the tragedy. They would like to sincerely thank the Italian coastguard, emergency services and all those who helped in the rescue."

"Their one request now is that their privacy be respected at this time of unspeakable grief.”

Sushovan Hussain, a close friend and colleague of Mr Lynch, said he and his wife were "utterly devastated by the deaths of so many of our dear friends".

"We have known Hannah since her birth, and for her to be taken on the precipice of her life is cruel beyond belief," he added.

"Mike was the most brilliant mind and caring person I have ever known," another close friend, Andrew Kanter, said. "His passion for life, knowledge and all those around him was instantly inspiring to everyone he met, and he will be sorely missed."

The Italian Coast Guard released a statement saying the rescue operations have come to an end with the recovery of Hannah Lynch, adding that a total of seven people were confirmed dead.

The survivors include a one-year-old child and Hannah’s mother, Angela Bacares.

Morgan Stanley International bank chairman Jonathan Bloomer, his wife Judy Bloomer, Clifford Chance lawyer Chris Morvillo, his wife Neda Morvillo and the boat's chef Recaldo Thomas all died in the disaster.

Rescuers described the operation, which has been ongoing since Monday, as "complex", with divers limited to 12-minute underwater shifts.

A coast guard vessel that had been at the shipwreck site for hours could be seen returning to the harbor when rumors spread that the last body had been located.

Meanwhile, divers were stripping off their orange suits on the quayside when a chopper touched down close by.

According to an Italian Coastguard spokesman, raising the sunken boat off the bottom is "not on the agenda" but will be decided upon in the future.

Dive team members said that the ship was "practically intact" on the seafloor.

According to the Times, Hannah Lynch had just completed her A-levels and received an invitation to study English at the University of Oxford.

Hannah was a former student at London's Latymer Upper School in Hammersmith. "We are all incredibly shocked by the news," the school's spokeswoman stated.

"Our thoughts are with their family and everyone involved," they stated.

Hannah's friend Gracie Lea said of her, "She's easy to love—sincere, dedicated, ferociously intelligent, and very compassionate. She always had a smile on her face.