MetService says Cyclone Cody will now pass east of New Zealand on Monday.
It has subsequently lifted the heavy rain watch which was in place for Gisborne and the Wairoa District.
However, a strong wind watch is in place for the eastern Bay of Plenty and northern Gisborne.
The watch is in place from 3am on Monday until midnight.
MetService warns south to southeast winds may approach severe gale in exposed places at times.
Hazardous conditions are still expected about exposed eastern coastlines of the North Island, where large easterly swells, significant sea surges or rips and coastal inundation are possible.
Cyclone Cody is expected to move southwards towards the Chatham Islands on Tuesday.
The forecast for the islands is that rain will develop during the second half of Monday as Cody approaches.
MetService says rain, with possible heavy falls, and gale easterly winds can be expected during Tuesday.