A tsunami advisory issued earlier this morning following a 7.7 magnitude earthquake has now been cancelled.

The earthquake occurred southeast of Loyalty Islands at 2.20am, prompting a tsunami warning.

The National Advisory, NEMA, says based on the most recent modelling and decreasing tsunami amplitudes at North Cape, Great Barrier Island and the East Cape, the tsunami threat has passed for New Zealand.

'There could still be large unexpected currents and the public are advised to continue to take precautions in coastal zones for the rest of today," says a NEMA spokesperson.

"Strong currents and surges can injure and drown people. There is a danger to swimmers, surfers, people fishing, small boats and anyone in or near the water close to shore.”