A North Korean ship allegedly smuggling sophisticated missile equipment from Cuba has been seized by Panama.

Initially, the ship was stopped on the Atlantic coast of Panama on suspicion of carrying drugs but later it was found to have other cargo of greater concern, according to the President of Panama, Ricardo Martinelli

"When we started to unload the shipment of sugar, we located containers that we believe to be sophisticated missile equipment, and that is not allowed," said  President Martinelli.

"The world needs to sit up and take note: you cannot go around shipping undeclared weapons of war through the Panama Canal," said Ricardo.

Tweeting an image of the cargo, the president said the captain of the North Korean ship tried to commit suicide when Police moved in.

"The captain has tried to commit suicide and the crew also rioted," said Martinelli "So we are holding this vessel for further investigation."

Cuba is the only one-party Communist regime in the Americas and an ally of the isolated-Pyongyang government.

China, another ally, has distanced itself from the North Korean government in recent months following a series of verbal attacks between Pyongyang and Washington and U.S.-backed Asian countries including South Korea, over Pyongyang's missile and nuclear tests.

Refusing to give up its nuclear ambitions, Pyongyang earlier this year even threatened to attack the U.S. and South Korea.

As a result of North Korea's nuclear and missile tests, tensions over the Korean peninsula have dramatically escalated in the last few months.

South and North Koreas recently held several talks but failed to arrive at any consensus over contentious issues.