"To my mind that's where the first call should be made on anything beyond the current strategy."

Ms Bishop will on Friday attend a US-led United Nations debate on Iraq and remain in New York for the start of a broader General Assembly meeting next week. Prime Minister Tony Abbott will arrive next week for discussion on countering terrorism and foreign fighters to Iraq and Syria.

Her remarks came as the Chief of the Defence Force, Air Chief Marshal Mark Binskin, confirmed that Australian special forces soldiers would go "beyond the wire" of bases and move with Iraqi troops on the battlefield. But they would operate out of headquarters at the level of battalions, meaning each small team of Australians would advise and help about 100 Iraqi soldiers, which Air Chief Marshal Binskin said would keep them back from the front line.

"We will not be conducting independent combat operations as formed forces. We'll be in support of the Iraqi Security Forces," he said.

The special forces would be commandos, rather than SAS soldiers who would receive the standard military allowances for "war-like situations". But the military chief said calling the Australian operation "war" would give the Islamic State "a legitimacy they don't deserve".