Vanuatu's Red Cross said ashfall from a volcano on Gaua Island in the north was affecting food and water sources of villagers waiting to be evacuated, New Zealand media reported on Wednesday.

Preparations were being made to evacuate nearly 3,000 people from Gaua should the volcano's activity increase.

There's been an increase in mud flow, ash fall and more explosions from the Gaua volcano in recent weeks.

The water level in the crater lake has also been rising and there are fears that mud could flow from the lake to populated areas.

The local Red Cross disaster management officer, Augustin Garae, said fumes and ash showering the island have been a hazard for people's health, Radio New Zealand International reported on Wednesday.