The Northern Territory Government says residents of a remote Central Australian community are too scared to leave their houses because it has been overrun by thousands of wild camels.

Local Government Minister, Rob Knight, says the situation is critical.

"The community of Docker River is under siege by 6000 marauding, wild camels," he said.

He says in the past few weeks, camels have invaded the town in seach of water.

In the process they have trampled infrastructure and invaded the community's airstrip.

"This is a significant community - some 350 people - where they've actually come right into the community, smashing infrastructure, so it's become a critical situation.

"There are health issues, there's camels being trampled and dead carcasses in the community.

"They are smashing over water mains and intruding on the airstrip causing problems with medical evacuations."

The Macdonnell Shire Council has been given an emergency fund for a wide-scale cull.

The shire chief executive, Graham Taylor, says immediate action is required.

"We are concerned really about the issue of children running around and wanting to play with the camels," he said.

He added that there could be other risks as well.

"There will also probably be the social and psychological impact on some people about being contained in homes and not being able to step out," he said.

"So there will be a few cost factors there."

He says helicopters will herd the camels 15 kilometres outside the community where they will be shot and left to decay.