The cargo ship Fremantle Highway is to be towed to the Groningen port of Eemshaven now the fire inside the hold appears to have burnt out, the transport ministry has confirmed.

Fire broke out on the ship, carrying almost 4,000 cars, a week ago. It has since been towed to a location some 16 kilometres north of the Wadden Sea island of Schiermonnikoog so it is no longer in a busy shipping lane.

The ministry says Eemshaven is the most logical destination for the ship, considering it is only 64 kilometres from its current location and has the infrastructure to deal with the wreck.

The situation on board the ship is currently stable, officials said. Most of the ship has now been inspected and all the fires appear to be out.

The cause of the blaze has not yet been established but it may have started in one of the electric vehicles on board.