Tropical Cyclone Gretel is set to bypass Norfolk Island in the next 48 hours, although it will still create damaging winds.

Tropical Cyclone Gretel may not make landfall but was still expected to have an impact with damaging wind warnings of around 100km/h for coastal regions across south-east Queensland and northern New South Wales.

Bureau of Meteorology forecaster Matt Bass said Gretel formed at 5am on Sunday and would develop into a category two system before transitioning into a tropical low over the Pacific Ocean.

It would pass to the north of Norfolk Island with local residents warned of winds in excess of 125km/h on Monday.

The cyclone’s reach would be felt along coastal regions with gusts topping 90km/h along the Border Ranges, Moreton Island and North Stradbroke Island, he said.

“In the early hours of Tuesday morning it will transition into a tropical low but the winds will be as strong as a category two cyclone,” Bass said.

“The peak in the winds is tonight, around the coastal strip south of Fraser Island and along the border ranges along the New South Wales border.

“It will be pretty breezy more generally along the coast overnight.”