Australia's most senior Islamic State member, Mohammad Ali Baryalei has reportedly been killed.
The ABC is reporting Baryalei is believed to have died four or five days ago during fighting in the Middle East.
A spokesman for Attorney-General George Brandis says the government is trying to confirm if Baryalei, the most senior Australian involved in the Islamic State conflict in Iraq and Syria, died four or five days ago.
Speaking at the National Press Club, Foreign Minister Julie Bishop said the government is working to verify reports of Baryalei's death.
Ms Bishop said it highlights the dangers faced by Australians who choose to be foreign fighters.
"It does highlight what the government has been saying, which is that Australians who leave this country to fight in Iraq and Syria are putting themselves in mortal danger," she said.
Australian intelligence officials believe Baryalei was recruiting Australian fighters to the wars in Iraq and Syria.
In September, an arrest warrant was issued for the 33-year-old.
Authorities believe he conspired with another Sydney man to carry out a plot to execute random civilians in Australia.
It is believed that at least 15 Australians have been killed in the conflict against IS since it began.
Before he fled to the Middle East, Baryalei was a leader in the "Street Dawah" movement in which members preached their puritanical version of Islam on the streets of Sydney.
He had also worked as a nightclub bouncer and actor.
