Chinese rescuers discovered corpses of two sailors on the stricken Iranian oil tanker on Saturday morning, Iranian state media reported.
The ship has been ablaze for almost a week since it collided with another vessel on January 6 in the East China Sea and has been drifting into Japanese economic zone over the past several days.
Rescuers earlier this week recovered one body from the sea after the Iranian vessel collided with the Chinese freight ship, resulting in it being set on fire.
Following the incident, 30 Iranians and two Bangladeshis who were working on the oil tanker went missing.
Iranian officials have dispatched army special forces to the scene as they are still hopeful that the special forces would rescue the remaining 29 crew members.