'Our whole lives are in this house': Out of control bushfire threatening Port Macquarie homes

Residents near Port Macquarie in NSW have been told to seek shelter as a dangerous bushfire closes in on homes.

The blaze has breached containment lines and is quickly moving away from the coast, towards the Pacific Highway. The fire is burning towards the village of Lake Cathie.

Some residents are fleeing their houses with any possessions they can carry, others are staying on to defend their properties.

9News was told the fire has burnt right up to gardens in some homes at Lakes Innes and Lake Cathie, but there are no reports of damage of yet.

"Pretty panicky right now mate, it's right over there so, if it gets into this bush here, we advised the council to clear a bit, it's no good for us, we're gone," one resident told 9News.

"Our whole lives are in this house mate. There's not much we can do."

Two large air tankers are tackling the blaze, which is now at Emergency level, the Rural Fire Service says, but the waterbombers will not work into the night.

Locals are being warned embers blowing ahead of the fire are creating spot fires.

The fire, which is believed to have been started by lightning, has been burning for a few days and is being fanned by strong winds.

About 80 crew are on the ground.

Smoke from the fire is blowing towards Sydney and Newcastle, creating a strong haze.

The Royal Fire Service has issued a warning saying that smoke could sit over Sydney for several days