Tropical Cyclone Anika has formed into a category 1 system and is now moving slowly south towards the northern Kimberley coast.
A warning zone stretches from Dundee Beach, 130 kilometres south of Darwin, to the Mitchell Plateau in WA, including Wadeye in the NT and Wyndham and Kalumburu in WA.
A watch zone remains in place from Point Stuart in the NT to Dundee Beach, including the Tiwi Islands and Darwin, and from the Mitchell Plateau to Cockatoo Island in WA.
Forecasters say Tropical Cyclone Anika has sustained winds near the centre of up to 85 kilometres per hour with wind gusts of about 120 kilometres per hour.
TC Anika to make landfall Saturday night
At 9.30am ACST, Tropical Cyclone Anika was about 350 kilometres west south-west of Darwin and 175 kilometres north-east of Kalumburu.
"The expectation is that it will be moving slowly southwards today," BOM senior meteorologist Rebecca Patrick said.
"There is still that little bit of uncertainty into the exact path it will take, whether that’s into the Kimberley or a little bit closer to the Top End coast."
Ms Patrick urged anyone living in watch or warning zones to keep an eye out on updates this morning, as forecasters continued to monitor Tropical Cyclone Anika's path.
BOM forecasters say Tropical Cyclone Anika is expected to reach category 2 strength shortly before making landfall over the north Kimberley coast on Saturday night or early Sunday.
Destructive winds with gusts of up to 130 kilometres per hours are expected along the coastal fringe between Kalumburu and Wyndham when the system does make landfall.
Gales of up to 100 kilometres per hour may extend from from Mitchell Plateau to the WA/NT border later Saturday.
Forecasters predict Tropical Cyclone Anika will weaken over land and begin moving southwest, remaining near the Kimberley coast.
Darwin still in cyclone watch
Ms Patrick said the NT capital of Darwin was still on cyclone watch — for now.
She said although it was "a little bit less likely" the system would impact Darwin, forecasters wanted to watch the system's path before removing the caution.
Ms Patrick said people in Darwin could expect wet weather and the chance of "severe thunderstorms" with high seas.
"We know that [in Darwin] we're going to have these monsoon conditions continuing for a number of days with that cyclone to our south, so that's bringing the monsoon trough further south as well, so [we're] expecting that monsoon rain to continue," Ms Patrick said.
"There's also a lot of rain on the roads."
Heavy rainfall is expected over the Tiwi Islands in the NT and western parts of the Daly District today; as well as in the northern parts of the Kimberley.
A flood watch is current across the North West coast of the NT, with many parts expected to see rainfall totals of 150mm to 200mm over the next three days.
Catchments include the Tiwi Islands, Finniss River, parts of the Adelaide River and Lower Daly River.
TC Anika 'unpredictable': NTES
Northern Territory Emergency Service (NTES) northern command manager Mark Cunnington said Tropical Cyclone Anika had made little impact on the NT so far.
"As far as the Northern Territory is concerned, the most impact we've had is some light wind and rain around the coastline and that's expected to continue for the rest of today," he said.
"Impacts on the NT coast, while unlikely, are still possible so that's why the [cyclone] warning is being held on our western coastline at the moment."
Mr Cunnington said cyclones were "unpredictable", so it was important for residents to be prepared for the worst.
He urged anyone who hadn't already to pack their cyclone kit and make a plan about where to shelter in case of an emergency.
Mr Cunnington also reminded motorists to take care on the roads, and to avoid any flooded crossings.
Steve Longo from WA's Department of Fire and Emergency Services said after Tropical Cyclone Anika made landfall tonight, the system could weaken.
"This cyclone certainly has the potential, once it hits landfall, to develop back into a low," he said.
He advised people in the WA towns of Derby and Broome to prepare for "severe weather" and "heavy rainfall" early next week.