The submarine USS Montpelier (SSN 765) and the Aegis cruiser USS San Jacinto (CG 56) collided while participating in a "group sail" along with another vessel, ABC news reported quoting a Navy statement.
The statement adds that there were no injuries aboard either ship and that the submarine's nuclear powered reactor "was unaffected by this collision."
The incident is under investigation.
A Navy official says three ships were participating in an anti-submarine exercise in preparation for an upcoming deployment as part of the strike group for the aircraft carrier USS Harry S Truman.
According to the official, the initial assessment of damage is that there was a complete depressurisation of the sonar dome aboard the San Jacinto. Located below the water line of surface warships, sonar domes provide the bulbous shape to the bows of warships.
After the collision, the official said, the submarine surfaced and communications were established between all the ships on the scene.
The carrier USS Harry S Truman is also there, available to provide assistance. The two ships involved in the collision are both operating under their own power.
Collisions between Navy submarines and surface warships are rare.
In March, 2009 the submarine USS Hartford suffered severe damage to its Con tower after colliding with the amphibious transport ship USS New Orleans in the Strait of Hormuz.
The subsequent investigation found fault for the collision lay with the commanders aboard the submarine.
Several officers and crew aboard the submarine were later disciplined for their roles.
