Saudi and Iranian media disagree over whether a missile or suicide boat caused the massive explosion.
Footage, which surfaced on Monday, shows the violent attack being launched on the Saudi naval vessel.
A huge explosion can be seen as the ship is engulfed in fire and smoke.
It has been reported that a smaller vessel collided with the rear of the battleship which caused the fire, killing two crew members on board.
The Saudi warship was attacked by the Houthi militants
Yemen is one of seven countries on Donald Trump’s travel ban, meaning residents would not currently be able to enter the US.
Saudi state news agency SPA reported three crew members were also injured after the attack, which was launched by the Houthi movement.
However, the Houthis have said they launched a ballistic missile at the warship on the Red Sea, between Yemen and Eritrea, on Tuesday morning.
In a statement on SPA, it said: “The coalition said that the Saudi ship dealt with the boats as necessary.
“However, one of the boats collided with the rear of the vessel, resulting in the explosion of the boat and a fire at the rear of the ship.
“The crew extinguished the fire. Two members of the ship crew fell martyrs and three others were injured and they are in stable conditions.”
Smoke can be seen filling the sky after the explosion on the Saudi warship
Yemen’s Houthi militants have received support from Iran, and last year in October 2016 fired missiles at US ships when they crossed paths.
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Saudi Arabi leads a coalition of Arab Gulf and backs the government of Yemeni President Abdu Rabbu Mansour Hadi against the Houthi uprising.
Millions of Yemen citizens are thought to be suffering from a lack of basic necessities and are starving as a result of the strict naval blockade imposed by the coalition.
The blockade is in place to search ship suspected of smuggling Iranian weapons into war-torn Yemen.
Yemen is seen as a proxy war between the two powers of Islam, Sunni Saudi Arabia and Shia Iran.