  We consider the modulational instability of nonlinearly interacting
two-dimensional waves in deep water, which are described by a pair of
two-dimensional coupled nonlinear Schroedinger equations. We derive a nonlinear
dispersion relation. The latter is numerically analyzed to obtain the regions
and the associated growth rates of the modulational instability. Furthermore,
we follow the long term evolution of the latter by means of computer
simulations of the governing nonlinear equations and demonstrate the formation
of localized coherent wave envelopes. Our results should be useful for
understanding the formation and nonlinear propagation characteristics of large
amplitude freak waves in deep water.
