Cocos Islands braces for cyclone

Residents of the Cocos Keeling Islands are preparing for a possible cyclone on Christmas Day and Boxing Day.

The category is currently below cyclone intensity at 85 kilometres per hour, but it is intensifying, the Bureau of Meteorology says.

It is estimated to be about 275km northeast of Cocos Island and is moving southwest at 19km/h.

The bureau says it is possible gales will hit the islands before sunrise on Christmas Day, with the greatest risk likely to be later in the day and early Boxing Day as the system moves closer and intensifies.

"Destructive winds with gusts to 150km/h are possible if the centre passes close to the islands late Thursday or early Friday," the bureau said.

Rain is expected to develop later on Wednesday and become heavy during Thursday and Friday, with flooding possible.