Forecasters keeping a close eye on Tropical Cyclone Penny are unsure if she will return to the Queensland coast as a full blown cyclone next week.

Penny redeveloped over the Coral Sea on Wednesday after she dumped more than 110 millimetres of rain on far north Queensland and whipped up wind gusts of almost 100km/h on New Year's Day.

Tropical Cyclone "Penny" over water east of Cape York Peninsula east of Lockhart River on Wednesday evening. Credit:Bureau of Meteorology

A Bureau of Meteorology spokesman said the system was too far offshore to produce any significant impacts along the Queensland coast during the next few days.

Penny will likely slow down towards the end of the weekend and return to the Queensland coast early next week.