Cyclone Stan likely to form on Sunday

The Northern Territory is on alert with Tropical Cyclone Stan likely to form this weekend.

The Bureau of Meteorology has issued a cyclone watch for Top End residents from Port Roper to the Queensland border, including Groote Eylandt.

Forecaster Rebecca Patricks says the cyclone, the first of the season, is likely to emerge from a vigorous monsoon trough and form into a Category 1 system in the Gulf between Boxing Day and Sunday afternoon.

"It will be a wild, woolly and wet Christmas Day for most people across the Top End," she told AAP.

Gale force winds from the system are forecast to start lashing the coastline within the next 48 hours.

Ms Patricks warned residents to finalise their emergency plans, cyclone kit preparations and clear any "potential wind-borne missiles" from their properties.

It's still unclear whether the storm will continue southeast and affect Queensland's Gulf Country.

"At the moment the track has it staying it the NT area," Queensland forecaster Shaun Luscombe told AAP.

The cyclone warning comes as the monsoon continues to hammer the Northern Territory with heavy rain and squally, gale force winds.

Flood, flash flood, severe thunderstorm, strong wind and abnormally high tide warnings have already been issued over much of the Top End.