Far north Queensland residents have attempted to lead a stray 3.8-metre crocodile back to the water's edge by utilising a wall of wheelie bins.

The croc was found basking in the sun in the backyard of a Karumba home about 6:00am on New Year's Eve.

More than a dozen wheelie bins were used to help guide the croc back to water. ( Supplied: Queensland Police Service )

Queensland police said a line of wheelie bins was used in an attempt to funnel the reptile back towards the water, but it did not work.

The croc was eventually boxed in with hay bales and contained until Cairns wildlife experts arrived to relocate him.

Local Danielle Day said the crocodile must have walked about half a kilometre through the streets before it wandered into two accommodation complexes and settled down in a residential backyard.

She said a forklift was used late on Saturday night to help lift the croc into a boat before it was taken away.

When the wheelie bins failed, the croc was contained until wildlife experts arrived. ( Supplied: Queensland Police Service )

"It was a hive of activity down at the Point," she said.

"We've been here for nearly 10 years and we've never seen that happen, like [a crocodile] come up onto the road and come up to where people stay."

Acting Police Sergeant Jim Richards said the animal would be moved to a crocodile farm in Cairns when the temperature cooled down.

"[Currently] he's tucked in a trailer in a shed that's obviously shaded so they've got wet bags on him to keep him comfortable so he's fine at the moment," he said.

Wildlife officers with the Department of Environment and Heritage Protection are currently monitoring the animal at a local holding facility.