Cyclone Hamish downgraded to Cat 3

Cyclone Hamish, now much weaker than two days ago, is set to hit Queensland's coast. Photo / weather.com

BRISBANE - Tropical cyclone Hamish has been downgraded to category three, however a severe weather warning has been issued along the central and southeast coast of Queensland.

Cyclone Hamish was about 160km east-northeast of Sandy Cape at 10am (AEST) on Tuesday and was moving at 10km/h slightly away from the coastline.

The Bureau of Meteorology tropical cyclone warning centre's Jim Davidson said the weather alert for areas between Yeppoon and Tewantin had been cancelled.

"The system will meander around for a day or two, several hundred kilometres off the coast," Mr Davidson said.

"That's why we're cancelling the watch and warning.

"We have issued a severe weather warning from Sandy Cape to Coolangatta for a combination of hazards including gale force winds, rough seas and abnormally high tides.

"It's not quite on the Gold Coast yet but is expected to be soon.

Meanwhile, one of the three fishermen missing off the central Queensland coast has been found alive in the water.

The man made it safely to a life raft dropped to him by a rescue aircraft, Australian Maritime Safety Authority (AMSA) spokeswoman Tracey Jiggins said on Tuesday morning.

Rescue crews hope better weather conditions will aid the search for the remaining two men.

The search began on Monday morning after a fishing trawler's distress beacon activated about 140 nautical miles east of Rockhampton.

Bureau of Meteorology forecaster Ben Annells said the three men would have experienced hurricane-force winds when they first went missing.

- AAP