The weather bureau is warning of gale-force winds, high tides and possible flooding in parts of the Top End as cyclone Gillian tracks north-west.
A cyclone warning remains in place for coastal and island communities from Elcho Island to Cape Shield, including Nhulunbuy.
Tropical Cyclone Gillian is about 290 kilometres east north-east of Nhulunbuy and moving north north-west at 15 kilometres per hour.
It is expected to pass to the north of Nhulunbuy on Sunday and continue moving west off the north coast of the Top End.
The Northern Territory Weather Bureau is warning that gales, with gusts up to 110 kilometres per hour, are expected to develop between Cape Shield and Elcho Island on Saturday night or Sunday morning.
Tides will be higher than usual between Cape Shield and Nhulunbuy, and large waves may produce minor flooding of low-lying coastal areas.
The bureau says heavy rains may lead to flash flooding in coastal areas of northeast Arnhem Land on Saturday night.
© ABC 2014
19:48 EST A large and powerful easterly swell is filling in along the east coast of Australia.