Tropical Storm Paloma, which formed in the Caribbean east of the Honduras-Nicaragua border early Thursday, was forecast to gain strength and strike Cuba as a hurricane, the Miami-based National Hurricane Center reported.

At 0900 GMT the center of Paloma was located about 110 kilometers (65 miles) east of Cabo Gracias a Dios on the Nicaragua-Honduras border, packing winds of 65 kilometers (40 miles) per hour, the hurricane center (NHC) reported.

The storm is moving towards the northwest on a path toward central Cuba at around 11 kilometers (seven miles) per hour.

"Additional strengthening is forecast ... and Paloma could become a hurricane on Friday," it said.

The storm is expected to dump 10 to 20 centimeters (four to eight inches) of rain over eastern Honduras, northern Nicaragua and the Cayman Islands, with up to 30.5 centimeters (12 inches) in places.

According to NHC forecasts Paloma is on a path to graze western Jamaica, then slam into Cuba on Sunday on its way towards the Atlantic.