The Bureau of Meteorology has declared a cyclone warning for Darwin, as Tropical Cyclone Fina approaches the Northern Territory coast.

The Tiwi Islands and parts of western Arnhem Land are also within the warning area and Wadeye to the Daly River mouth is now within the watch zone.

Cyclone Fina is currently a category one system, but is expected to increase to category two on Friday, with a chance it could reach category three late on Friday or Saturday morning.

Schools have been closed until further notice in the communities of Minjilang, Warruwi, Milikapiti and Pirlangimpi.

Charles Darwin University has closed its campuses in Darwin, AFL NT has called off all weekend matches and ferry services have been suspended between Darwin, the Tiwi Islands and Mandorah.

Schools in Darwin remain open for now.

Territory Emergency Operations Group Incident Controller Superintendent Kirsten Engels told ABC Radio Darwin the key message for Territorians was “don’t panic”.

“Just keep preparing, that’s the key – preparation,” she said.

“We want people to be ready, really take this seriously now, this system may bring gales and destructive winds and intense rainfall.

“Keep preparing if you’re not already but take this seriously please.”

Acting Senior Sergeant Kirsten Engels has a serious expression and is front of a purple background.

Superintendent Kirsten Engels says urged residents to stay at home when the cyclone reached Darwin. (ABC News: Felicity James)

Superintendent Engels said non-essential workers were not being directed to stay home at this stage and hospitals and health facilities “remain fully operational”.

When the cyclone does hit Darwin, Superintendent Engels urged residents to stay at home.

“Keep your preparations going, enact your plans, don’t get out there on those roads, we don’t want people to be a flood-wit,” she said.

“We want people to keep their common sense when it comes to driving around once the impact start being felt.”

Chief Minister Lia Finocchiaro told ABC Radio Darwin it was “business as usual until it needs to be something different” in terms of whether schools and businesses would be required to close.

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“I’ve made contact with the Department of Education earlier today and there is no indication that Darwin schools will be closed,” she said.

“Businesses will make their own decisions for now and then if there is a need to be sending people home from school or closing businesses, moving people out of government buildings, all of those things, it will come through those official channels.

“Certainly at the emergency operations centre they are very alive to the fact that people need time to make their own movements, but it’s important to remember also we’re in an active situation dealing with weather and so that in itself is inherently unpredictable.”

A woman holding a clipboard looks at the camera with a smile.

Lia Finocchiaro says Territorians should keep an eye on official updates for information about any school or business closures. (ABC News: Michael Donnelly)

Royal Darwin Hospital (RDH) declared a code brown when the city entered the cyclone warning zone on Friday morning and began discharging patients to make room for any emergency admissions.

RDH general manager Sara Watson said the hospital’s focus was ensuring safe and adequate staffing during the cyclone.

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“The complexity of this cyclone is that it comes over Darwin or close to Darwin around the time when the night shift starts,” she said.

“So we have to make sure that staff are safe leaving work and staff are safe coming to work, and that’s our major priority right now, is to organise the rosters so that staff are safe.”

Dr Watson said the code brown was a “very well practised” standard procedure for RDH, with discharged patients who need to come back after the cyclone passes encouraged to do so.