Cyclone warning issued for Australia

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

Cyclone Paul, rated as category one, is creating 110km winds at coastal and island communities from Milingimbi to Port Roper, including Nhulunbuy and Groote Eylandt.

At last report on Sunday, the Bureau of Meteorology reported Cyclone Paul as being 90km north of Alyangula and 105km south-southwest of Nhulunbuy and moving south at 6km per hour parallel to the coast.

The cyclone is expected to intensify slightly before it moves inland between Cape Shield and Alyangula on Monday.

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 and tides are likely to rise significantly above normal high-tide levels.

Damaging waves and dangerous flooding is likely on Sunday and Monday.

- AAP