Australia will list the Islamic militant group Boko Haram as a terrorist organisation in response to the recent kidnapping of more than 200 schoolgirls in Nigeria.

Prime Minister Tony Abbott announced the plan in Parliament today, saying the whole world was transfixed and horrified by the event.

"The organisation Boko Haram is reportedly responsible - in addition to this - for the deaths of some 300 people in north-east Nigeria in various terrorist incidents... today I announce that the Government is taking steps to commence the process of banning Boko Haram as a terrorist organisation," he said.

"In banning Boko Haram as a terrorist organisation, Australia would be acting consistently with Nigeria and also with our international partners, including the United States, the United Kingdom, Canada and New Zealand."

Opposition Leader Bill Shorten confirmed the Labor Party would support the move.

What is Boko Haram? Boko Haram, which means "Western education is sinful", is loosely modelled on the Taliban movement in Afghanistan.

Boko Haram, which means "Western education is sinful", is loosely modelled on the Taliban movement in Afghanistan. The group considers all who do not follow its strict ideology as infidels, whether they are Christian or Muslim.

The group considers all who do not follow its strict ideology as infidels, whether they are Christian or Muslim. It demands the adoption of Sharia law in all of Nigeria. Read more

"The Labor Opposition's extremely concerned about the fate of more than 200 girls kidnapped from a boarding school in northern Nigeria in mid-April," he said.

"This is truly a horrific situation. It would be every parent's worst nightmare. The president of Nigeria has called on the international community to help do what we can to rescue these girls.

"The Opposition was advised the Government was considering making this listing immediately before Question Time today. We offer every support possible to the Abbott Government, we must do all that we can to assist."

According to the Attorney-General's Department it is an offence to be a member of a terrorist organisation, recruit other members, train members, acquire funds or provide support to an organisation listed as a terrorist group.

Anyone guilty of terrorist organisation offences can face up to 25 years imprisonment.

Currently, Australia has 18 organisations officially listed as terrorist groups. A full list of terrorist organisations can be found at the Australian National Security website.

After being accused of a sluggish response to the kidnapping, the Nigerian government has now sent thousands of troops to the region and says it is ready to talk to Boko Haram about an offer to exchange the schoolgirls for Islamic militant prisoners.

This week Boko Haram released a video showing about 130 girls wearing hijabs and chanting the Koran.

The group's leader, Abubakar Shekau, said he would not order the release of the students until the Nigerian government released all militant prisoners.

Senior Nigerian government minister Tanimu Turaki said dialogue was the preferred option, however he said when the government had tried to talk to Boko Haram before, the group had complained that they were talking to the wrong people and so the meetings failed.

The minister said the Islamists should publicly name delegates they trust, then the government would engage with them.

The US and Britain also have teams on the ground to help with the search for the schoolgirls.

The US State Department said Washington had sent in military, law enforcement and development experts.

Britain's minister for Africa, Mark Simmonds, will travel to the Nigerian capital this week for talks on further assistance, the foreign office in London said.