The first cyclone of the season is on the horizon, with the potential to make a significant impact as it approaches land this weekend.

The Bureau of Meteorology has identified the formation of Tropical Cyclone Fina in the western Arafura Sea, north of Darwin. According to their cyclone tracker, the system is currently moving slowly east-northeast.

Forecasts indicate that the cyclone will intensify to category two strength today.

Although it is currently drifting away from the coast, the Bureau anticipates that later on Thursday, the cyclone will change direction and head south towards the Top End of the Northern Territory.

Residents in the western and northern areas of the region are advised to keep an eye on updates, as there may be a tropical cyclone impact later in the week, according to the Bureau of Meteorology.

As of 3.30am ACST (5am AEDT, 4am AEST), the category one cyclone had sustained winds of 75km/hr and gusts of up to 100km/hr.

It was about 315km north-east of Darwin and moving at about 9km/hr.