The weather bureau says strong winds are predicted across north Queensland over the coming days.
Senior forecaster Ken Kato says the system is about 300 kilometres east of Cairns and could form into a tropical cyclone.
"We do expect it to gradually intensify in the coming days," he said.
"There is a moderate chance of the system becoming a tropical cyclone later this week, probably around the central to northern Coral Sea area.
"At least during the forecast period it'll probably drift away from the coast in a general south to south-easterly direction."
Weather bureau spokesman Doug Fraser says it will lead to wet and windy conditions.
"We've got some rain working its way up through the Burdekin at the moment," he said.
"It looks like we'll probably see it starting to build through the Townsville region.
"We are expecting to see further rain in the next couple of days before we see things clearing away from the coast."
Mr Fraser says winds will intensify as a result.
"By this afternoon 15 to 20 knots, overnight and tonight getting up to 25 knots and 25 to 30 knots by tomorrow," he said.
"As it's feeding into the low-pressure system as it gradually develops we will see fairly strong winds over the next few days."
The bureau says it is also monitoring another monsoon trough over the Gulf Country and the Coral Sea.