This paper addresses the control design for a nonlinear vessel manoeuvring model. The authors consider a highly nonlinear vessel 4 DOF model. The proposed control algorithm consists of a combination of an iteration technique that approximates the original nonlinear model by a sequence of linear time varying (LTV) equations whose solution converge to the solution of the original nonlinear problem and, a lead compensation design in which for each of the iterated linear time varying systems, the controller is optimized at each time on the interval. The control designed for the last iteration is then applied to the original nonlinear problem. Simulations results show good performance of this approximation methodology and accurate tracking for certain manoeuvring cases under the control of the designed lead controller. The main characteristic of the nonlinear system's response are the reduction of the settling time and the elimination of the steady state error and overshoot.