New Zealand will have a role in the fight against Islamic State extremists in the Middle East, Prime Minister John Key has told Parliament.

He hasn't previously confirmed New Zealand will contribute to the US-led campaign against IS.

"We can turn our eyes away from the situation if we want to. But I tell New Zealanders with honesty that we face international risks, we face regional risks, and there's a very real risk we may one day face a domestic risk," he said on Tuesday.

"We have to play our part in some form, we have not made a decision on what that part may be."

Mr Key said he would continue to engage with opposition parties, and share with them as much information as he could about the situation in Iraq and Syria.