Only three years after being found off the coast of Australia, environmentalists fear the rare snubfin dolphin could be facing extinction.

Snubfin dolphins are thought to be the only new dolphin species to be discovered in more than two decades.

"These little snubfins are unusual in that they live in small family groups ... they don't do any kinds of ocean voyage (and) they live in shallow waters close to land," said research scientist Carol Palmer.

Ms Palmer is heading a $50,000 project launched yesterday to gather data on the "pretty ugly" mammals in the waters around Darwin Harbour in the Northern Territory.

Click here to read the complete story on News.com.au.