A community group is organizing to save the 130-year-old Falls of Clyde museum ship.

Bishop Museum is considering scuttling the deteriorating vessel in shallow waters off Oahu's Waianae Coast.

A group calling itself the Friends of the Falls of Clyde wants to preserve the ship docked at Honolulu Harbor.

The ship — the only surviving iron-hulled, four-masted full rigged ship in the world — was built in Scotland in 1878. It's named after a waterfall on the River Clyde flowing through Glasgow.

The leader of the group, Bruce McEwan, said he wants to keep the vessel in Hawaii. The group estimates preservation would cost between $1 million and $2 million.

The group has been meeting weekly for more than a month to brainstorm on attaining ownership of the vessel.

Bishop Museum said a recent assessment found it would cost $32 million to refurbish the vessel.

The museum set a Monday deadline for groups and individuals to submit a formal preservation and restoration plan. But Timothy Johns, president and chief executive officer of the Bishop Museum, said the museum is willing to meet with the group, which has shown a deep interest in saving the ship.

McEwan said it was necessary to become a 501(c)(3) nonprofit, tax-exempt organization to ensure potential donors as well as public and private groups of their legitimacy and intentions.

"There's nobody else who has the ability to step in and who has a plan," McEwan said.

He obtained a liability insurance quote of $32,000 a year for the vessel and a commitment from Marisco Ltd. to dry-dock the vessel at Barbers Point at an affordable cost.

"We understand that it will be a major challenge," said McEwan, also chieftain of the Caledonian Society of Hawaii.

McEwan said there is national interest to save the ship. So far, about 500 people signed their online petition to save the vessel and for Bishop Museum to explore all options before scuttling the vessel.