Firefighters have worked through the night to gain the upper hand over a bushfire burning in the Port Stephens area, north of Newcastle.

The bushfire has raged through 1931 hectares of land in Tomago, Williamtown and Raymond Terrace, with the RFS downgraded the warning from emergency to watch and act at 7.20pm.

The fire forced the closure of Newcastle Airport, which is expected to open as normal today.

The fire is moving in an easterly direction. (9NEWS)

Fire crews finally started to make progress on the fire late yesterday as heavy winds started to die down.

Residents around Tomago, Williamtown and Raymond Terrace were being urged to take shelter after an emergency warning was issued by the NSW Rural Fire Service.

Strong winds originally sparked the bushfire and led to numerous subsequent spot fires.

The large air tanker Nancy Bird assisted crews to help combat the fire.

Residents of the nearby town of Medowie have been warned to monitor conditions and be aware of falling ash and embers in the area.

Newcastle Airport has closed because of the fire. (9NEWS)