The wife and five children of a senior Islamic State fighter are attempting to return to Australia from Syria, according to a report.

Convicted terrorist Khaled Sharrouf, 33, fled Australia in December 2013 and his family — a wife, two teenaged girls and three young boys — followed. He joined the fight of the Islamic State (ISIS) and became known globally for his use of social media to spread a disturbing photo of his seven-year-old son holding a severed head.

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At the time, the U.S. Secretary of State John Kerry described the image as "one of the most disturbing, stomach-turning, grotesque photographs ever displayed."

According to Fairfax Media, the family of Sharrouf's wife Tara Nettleton are attempting to repatriate the young family to Australia through Malaysia. It is believed to be due to poor living conditions in the region.

ISIS fighter Khaled Sharrouf and his young children pose with weapons. Image: Abu Zarqawi Australi / Twitter

Debate surrounds the situation regarding children of terrorists and the need for their protection, with Immigration Minister Peter Dutton stating the family would most likely be placed into care on their return.

"In terms of what care arrangements [the children] could be placed into is really an individual question for each family," Immigration Minister Peter Dutton told Today. "But in terms of the adult's culpability, if they have been involved in activities against Australian law they will face the law when they return home."

Prime Minister Tony Abbott said the children will be dealt with in the same way the children of other criminals are, and that if the family has been involved in terrorism they would be punished under Australian law. Sharrouf — who is not known to be returning — is on Australia's terrorist list and would be arrested if he set foot in the country.

The son of Khaled Sharrouf holds a severed head, which has been blurred. Image: Abu Zarqawi Australi / Twitter

"If criminals come within the reach of our law, whether they’re male or female, they will face the full severity of our law," Abbott told media at a press conference on Wednesday. "There are criminals who go to jail all the time and they have children, and the children of these particular criminals will be dealt with in the same way that the children of criminals are normally dealt with."

The wife and children of ISIS fighter Khaled Sharrouf want to return to Australia. Image: Abu Zarqawi Australi / Twitter

The report comes as the Australian government announced it would strip dual-citizens involved with terrorist organisations of their Australian citizenship. The move is an attempt to counter the risk of terrorists from Syria and Iraq returning to Australia and carrying out attacks locally.

"People face very serious consequences when they return to this country if they have broken Australian law and if they’re in prescribed areas and don’t have a reason for being there," Dutton told ABC radio on Wednesday. "If they’ve been involved in terrorist activities they will face the full force of the law when they return to Australia."

Nettleton had her first child with Sharrouf at 17 and converted to Islam not long after. Nine years ago, she cut off contact with her father, Peter, who has since pleaded for her to bring his grandchildren home, according to the Daily Telegraph. Her mother, Karen, is reportedly close to her daughter and is assisting in bringing her and the children home.