The Spanish vessel, ‘Infanta Cristina’ faced off with the little British boat on Thursday at 9:30am around a mile and a half off Gibraltar’s shore.
A British source told the Sun that he believed the incident was the 5th this year and said: “It’s happening very frequently now.”
He added: “Locals are saying that the Royal Navy and the British government should do more to stop these incursions.
“The strait of Gibraltar is very populated with ships and tankers and something serious could happen one day.”
The Royal Navy HMS Sabre pursued the Spanish warship, which is armed with guns, torpedoes and mortar weapons.
A spokesperson for the UK Foreign Office said: “We can confirm an incursion by the Spanish navy occurred this morning.
“As with all incursions, the Royal Navy challenged the vessel.
“When challenged, the Spanish navy vessel left British Gibraltar Territorial Waters.
“Incursions are a violation of sovereignty, not a threat to it.
“We have no doubt about our sovereignty over Gibraltar.”
This latest incident comes after a string of inflammatory moves by Spain off Gibraltar, which many have seen as attempts to question British sovereignty over the Rock.