Australia's role in Iraq won't be expanded to ground troops, despite Barack Obama's decision to allow US special forces to target Islamic State leaders.
The US President has asked Congress for formal authority to take the fight to IS - also known as Daesh - including secret ground-based attacks if specific targets arose and Iraqi forces were unable to take action.
However, the US laws do not authorise "enduring offensive ground combat operations" and have a three-year time limit.
The move came as Iraqi Foreign Minister Dr Ibrahim Al-Jaafari held talks in Canberra with his Australian counterpart Julie Bishop.
Ms Bishop said the role of the 600 Australian personnel would remain limited to air strikes and training of counter-terrorism forces.
"We have not sought to expand our role to include combat troops," she said.
Dr Al-Jaafari said his government had never asked for a ground forces contribution from any coalition partner, but was pleased with Australia's efforts in bombing Islamic State targets, sharing intelligence and training his country's forces.
"We are at the beginning of a major war ... (but) Iraqi armed forces are not suffering any shortage in its personnel," he said.
The minister thanked Australia for its "great role" in securing a global commitment to throwing IS out of Iraq, but said: "The international response against ISIL was late."
About 8000 Daesh fighters have been killed but the terrorists still have between 20,000 and 31,500 fighters, including 3400 Australian and other foreign fighters.
Coalition forces have carried out more than 2000 air strikes since the fight began and Iraqi and Kurdish security forces have retaken 700 square kilometres of Iraqi territory.
"The advance of Daesh has been halted in Iraq," Australia's Chief of Joint Operations, Vice Admiral David Johnston said at a briefing on Thursday.
However key cities such as Mosul and important oil fields remain in enemy hands.
Vice Admiral Johnston said Daesh was losing its fighting capability and effectiveness and was increasingly turning to home-made bombs and suicide bombers, which often took the lives of civilians.
"Daesh isn't able to mass force," he said.
"Its freedom of movement is restricted now."
Asked whether President Obama's decision would have an impact on ADF operations he said: "There is no intention to transition to a combat-oriented role by any of the coalition forces."
However, if some limited ground operations began and the battalion headquarters hosting Australian special forces moved out of Baghdad our advisers may move with them, he said.
No time frame has been set on Australia's involvement, but a number of military experts have suggested it could take years to secure Iraq's borders.
"To achieve the outcome is likely to be years," the military chief said.
"The length of Australia's contribution to it is a question for government."
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