The Rural Fire Service advises that the Hank St fire may threaten properties around Tomago Rd, Cabbage Tree Rd, Barrie Close and Williamtown Drive, and the emergency warning extends down to the Fullerton Cove area.
The fire is burning in a south-easterly direction and has crossed Cabbage Tree Rd, heading towards Fullerton Cove.
It urges residents whose plan is to leave, or who are not prepared for defending their property, to leave immediately if the path is clear.
You should follow your Bushfire Survival Plan, and if you do not have one, ensure you know what you will do if the fire threatens your property.
If the fire impacts on your property, take shelter to protect yourself from the radiant heat.
Bert Pippen from the Port Stephens Fire Control Centre says around 100 fire crews and 25 appliances, along with water-bombing helicopters, are trying to contain the fire.
After back-burning overnight which created a heavy smoke haze over Newcastle and Lake Macquarie, the fire broke containment lines this morning when gusty north-westerly winds arrived earlier than expected.
Nelson Bay Rd has been closed between Vardon Rd and Richardson Rd. Southbound motorists are being diverted down Richardson Rd, then the Pacific Highway. Northbound traffic is being turned around at the Vardon Rd roundabout.
Masonite Rd at Heatherbrae is closed, as are Tomago Rd and Cabbage Tree Rd, between Old Punt Rd and Nelson Bay Rd.
The Traffic Management Centre advises motorists to avoid the area if possible, as heavy smoke is also affecting visibility.
McDonald's at Williamtown has been evacuated, and residents of Cox's Lane and Lavis Lane are asked to activate their Bushfire Survival Plans.
Port Stephens council has set up an evacuation centre at King Park, in Newline Rd near Raymond Terrace.
Some children from local schools are being taken there, and other students are being taken to Club Phoenix at Mayfield.
Parents are advised some school buses, diverted due to road closures, are delayed up to 45 minutes.
Newcastle Airport has been closed due to the fire's proximity, with passengers advised not to come to the airport and contact their airline for flight details.
An explosion heard near the airport was caused by a gas cylinder igniting in a shed.
Ausgrid crews have been kept busy dealing with multiple incidents and power outages due to the strong winds.
In the Fingal Bay and Shoal Bay areas, around 1800 homes and businesses have lost power, as have around 1400 in Raymond Terrace.
Newcastle Golf Course has closed, but the clubhouse is still open, and the Pacific Dunes course at Medowie is also closed.
Hunter Region Botanic Gardens has closed as a precaution.
An emergency warning has also been declared west of Muswellbrook where a bushfire is burning out of control.
The fire is burning in the area around Castle Rock Rd, Ridgelands Rd and Hidden Valley Way, near Blackjack Mountain.
Residents on Hidden Valley Way should seek shelter as the fire impacts.
If lives are at risk, the RFS advises you should call triple zero immediately.
Stay up to date with the fire situation by listening to your local emergency broadcaster, 1233 ABC Newcastle, checking the RFS website or calling the Bushfire Information Line on 1800 679 737.
If you live in the area but are away from home, it might not be possible to return to your property.
You can get the latest information on road closures here.
A total fire ban remains in place for the Hunter until midnight.
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