Residents on parts of the Northern Territory coast have been warned to take shelter immediately because the tropical depression has developed into a cyclone.
The Bureau of Meteorology says Tropical Cyclone Grant, currently a Category One, is slowly moving south and is expected to cross the coast east of Darwin on Boxing Day.
But the Territory Controller is warning residents west of Goulburn Island to Snake Bay, including Cape Don, to take shelter now.
The bureau says gales with gusts to 110km/h are expected to develop between Cape Fourcroy and Milingimbi, including the Tiwi Islands, Cape Don and Croker Island this morning.
Heavy rain ahead of the cyclone is expected to cause localised flooding in the northern Darwin-Daly, Arnhem and northern Roper-McArthur Districts.
Destructive winds with gusts to 130km/h may develop if the cyclone continues to intensify.
Cyclone Grant is not currently expected to hit Darwin directly, but the city may experience gales on Boxing Day as the edge of the tropical cyclone passes to the east.
Gales may also extend inland to Jabiru on Monday, the bureau says.
- AAP