The Turnbull government has developed detailed plans to manage the return of as many as 70 children of Australian foreign fighters who may come home from the Middle East as the Islamic State's so-called Caliphate crumbles.

Justice Minister Michael Keenan told Fairfax Media the plan prioritises security but also looks at counselling, education and welfare and is being done "hand-in-hand" with the states, who would case-manage each child.

Justice Minister Michael Keenan says government is aware of about 70 children who had either travelled with their Australian parents or have been born to Australian parents active in the conflict in Syria or Iraq. Credit:Alex Ellinghausen

His remarks come amid what experts say is an exodus from the so-called Islamic State's defacto capital of al-Raqqa in Syria as it is squeezed by a US-backed collection of local Kurdish and Arab opposition fighters.

Mr Keenan said the government was aware of about 70 children who had either travelled with their Australian parents or have been born to Australian parents active in the conflict in Syria or Iraq.