The seven survivors of a ferry sinking in Kiribati are expected to return home this morning.

The group escaped in a dinghy after the catamaran carrying 88 people disappeared from Nonouti Atoll over a week ago.

The dinghy was spotted on Sunday by an Air Force Orion, and the passengers were picked up by a nearby search ship.

The Rescue Co-ordination Centre says the ship then continued to search for the ship on its way back to Nonouti.

It's understood at least 22 children, 10 from a primary school and the rest of high school age, were on the ferry.

Local reports say the ferry had a recent history of mechanical problems.