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Fifteen people were rescued from the 55m (180ft) vessel but another seven are still missing, according to the area’s mayor.
Four British passengers, two Americans and a Canadian are said to be missing, Italian news agency Ansa reported. It is not known what country the person who died is from.
Local media said a fierce storm, including water spouts, battered the area overnight.
The superyacht, named Bayesian, capsized at around 5am off Palermo and was flying a British flag, according to ship-tracking site Marine Traffic.
The body was found near the wreck at a depth of 50m (164ft), the fire and rescue services said.
The daily Il Giornale di Sicilia newspaper reported that the yacht had mostly British passengers on board, but also people from New Zealand, Sri Lanka, Ireland and British-French citizens.
Speaking earlier, Filippo Tripoli, the mayor of Bagheria in Sicily, said: “This morning, off the coast of Santa Flavia, a foreign boat sank due to bad weather, 15 people recovered and seven missing.
“Already all the police forces and emergency services are operational and our Red Cross volunteers are present.”
A spokesman for the Foreign, Commonwealth and Development Office (FCDO) said: “We are in contact with the local authorities following an incident in Sicily, and stand ready to provide consular support to British nationals affected.”
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