A group of Yazidi women who say they were enslaved, raped and abused by Australia's most infamous terrorist are looking to a New South Wales tribunal for compensation.

Key points: The landmark case is set to kick off in a NSW court this week

The landmark case is set to kick off in a NSW court this week The group are trying to gain compensation from the terrorist's frozen assets

The group are trying to gain compensation from the terrorist's frozen assets A legal expert says it will be a difficult case because the offences would not have occurred in Australia

The group of women, who are originally from northern Iraq and have never lived in Australia, were with Khaled Sharrouf during his time in the Islamic State's de-facto capital Raqqa in Syria.

The landmark international compensation case is set to begin with a directions hearing this week in the NSW Civil and Administrative Tribunal, which covers NSW Victims Services.

Sharrouf, once labelled Australia's most infamous terrorist, is believed to have been killed in an air strike in the Middle East in August 2017 along with two of his young sons.

However those reports have never been independently verified by the Australian Government.

The group's compensation claim is being supported by The Lotus Flower, a British-based non-government organisation for displaced women.

Founder Taban Shoresh said it was the first claim of its kind in the world.

Reports of Sharrouf's death were never verified. ( 7.30 Report )

"We are hoping that Australia will pave the way for justice for the Yazidi victims. This will be a great step forward as they are feeling forgotten by the international community," Ms Shoresh said.

She said the compensation money could come from his estate, as his assets have been frozen by the Federal Government since 2014.

"The Federal and New South Wales governments could free up his assets, to use that money as compensation," she said.

"We do not want taxpayers' money."

Sharrouf was born in Sydney in 1981, and travelled to Syria in 2013 on his brother's passport where his Australian wife and children later joined him.

He became the first dual citizen to be stripped of his Australian nationality for terrorism in 2017.

The Lotus Flower does not wish to disclose the location of the group seeking compensation for fear of reprisals by any current or former Islamic State fighter.

However none of them have ever resided in Australia.

Taban Shoresh said the group of women wanted to claim the money from Sharrouf's assets. ( Supplied )

University of Sydney international law expert Professor Ben Saul said it would be a difficult case.

"New South Wales, like many states in Australia, has a no-fault, victims-of-crime compensation scheme which allows people who have been a victim of a serious offence to get some sort of remedy," he said.

"But the problem is that it is limited to offences which occur here in NSW or more generally in Australia, so it does not give any joy for victims of overseas crime, including international crimes like war crimes, crimes against humanity, genocide or torture."

However Ms Shoresh said those laws could be changed.

She said even if the particular legal case did not succeed, it sent an important message to the world.

Ben Saul said the current laws could be changed to help victims of international war crimes. ( ABC News: Danuta Kozaki )

"There are so many victims of Islamic State, including Australian foreign terrorist fighters, who need assistance to get on with their lives and recover from the incredibly brutal crimes that they have experienced," she said.

Professor Saul said a solution on how to help the victims of Islamic State was needed internationally.

"The best we have at the moment is a United Nations mechanism to collect and preserve the evidence," he said.

A spokesman for the NSW Attorney-General, Mark Speakman, said as the matter was due before the NSW Civil and Administrative Tribunal it would be inappropriate to comment.