Heatwaves and bushfires are set to sting southern Australia while the nation's north may be spared from cyclones, with a 70 per cent chance of Niño on the way.
There is triple the likelihood of an Niño weather pattern bringing drier-than-normal conditions by the end of 2018, the Bureau of Meteorology warned on Tuesday.
"Between the (above average) temperature and the lack of rainfall, this is not good news," bureau climatologist Robyn Duell told AAP.
"Because we have had such a dry year ... this outlook on the back of such little rainfall and dry conditions makes it such a worry for people."
Australia endured its driest September since records began in 1920, Ms Duell said.
There has been less rainfall in southern parts of the country and a dry spell up north.
"It is too difficult to say what the impact will be but on average we see less rainfall and often it (El Niño) is associated with drought in Australia," Ms Duell said.
The eastern tropical Indian Ocean is cooler than normal while the western part of the ocean is warmer than usual, which is common with El Niño, she said.
The warning comes as drought has left NSW and Queensland bone-dry while drought conditions have worsened into parts of Victoria where farmers are struggling to save crops.
