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Tropical Cyclone Paul has been declared off the coast of Far North Queensland, the Bureau of Meteorology confirmed today.
The category 2 tropical cyclone formed rapidly overnight and sits around 1000 kilometres north-east of Cairns.
The cyclone is growing in intensity and could reach category three later this afternoon.
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The tropical cyclone is slowly moving south-east from the coral sea, whipping up winds up to 92 kilometres per hour.
The BoM predicts that the cyclone will not impact the Australian mainland or islands off the east coast of Australia.
Yesterday the BoM predicted only a fifteen per cent chance that the tropical low system would develop into a cyclone.
Today, they upgraded that prediction, confirming that the latest tropical cyclone in the season had formed.
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According to meteorology service Weatherzone, Tropical Cyclone Paul should weaken from Friday onwards and is expected to have dip below tropical cyclone strength by Saturday.
All ships in the area of Tropical Cyclone Paul were asked to send weather reports to the BoM every three hours.
Tropical Cyclone Pau is the seventh tropical cyclone of the season, and the next cyclone to form will be named Tropical Cyclone Robyn.