Cyclone Paul hovers on Aussie coast

DARWIN - A category one cyclone is hovering on the Northern Territory coast, whipping up wind and rain before its predicted move inland.

Tropical Cyclone Paul is creating 110km/h winds near its centre, with gales at coastal and island communities from Milingimbi to Port Roper, including Nhulunbuy and Groote Eylandt.

A cyclone warning has been issued for the eastern tip of the NT and surrounding islands.

In its latest report issued in the early hours of Monday morning, the Bureau of Meteorology said Cyclone Paul was 85km south-southwest of Nhulunbuy and 110km north-northeast of Alyangula.

It was stationary on the coast near Cape Shield and was expected to move inland around Cape Shield and weaken to a low by Monday afternoon.

If the system takes a more northerly track, gales may extend west to Milingimbi and Maningrida late on Monday.

A storm tide is expected between Cape Shield and Port Roper, with tides likely to rise significantly above normal high-tide levels.

Damaging waves, heavy rain and dangerous flooding are likely on Monday.

Heavy rain could lead to localised flooding and significant stream rises over the eastern Top End and northern Roper-McArthur districts on Monday.

- AAP