Malcolm Turnbull says Australia will expand the training mission inside Iraq to include federal and local police.
The prime minister met with US Vice President Joe Biden in Sydney on Tuesday, just hours after Mr Turnbull's new ministry was sworn in.
He made the announcement during a joint press conference.
"One of the most important objectives now in Iraq is to ensure that the Iraqi police forces, their gendarmerie forces, are able to maintain the peace in areas that have been liberated from Daesh or ISIL as the Iraqi security forces and counter-terrorism forces progress," he said.
A 300-member Australia and New Zealand team is now operating inside Iraq training the Iraqi army for the fight against Daesh.
Mr Turnbull said Australia had no stronger alliance than that with the United States.
He said the two nations had a shared passion about "freedom, the rule of law, democracy and the right of every person to be able to aspire to realise their dreams".
Mr Biden congratulated Mr Turnbull on his recent election victory.
He said he had discussed innovation with business leaders, entrepreneurs and researchers and signed three agreements to share information on cancer.
"I'm making a prediction, Mr Prime Minister, that the MoU that we signed is going to become the model for sharing information around the world which isn't happening now," he said.
Mr Biden said Australian forces were the best trainers in the world.
"They're talking about a significant number of police needing to stay behind to reconstruct in key safety and security areas that have been reclaimed from ISIS," Mr Biden said.
He said more needed to be done to "set the economic rules of the road", with high standard trade agreements.
Addressing regional issues, Mr Biden said the United States was a "Pacific power".
"We are going nowhere. We believe we have been part of, along with Australia, the basis for regional stability that's allowed everyone to grow," he said.
On trade, Mr Biden said more needed to be done to "set the economic rules of the road".
Mr Turnbull has heaped praised on the vice-president's political capital saying the "Biden touch" will help get a controversial Pacific trade pact through Congress.
The 12-country Trans-Pacific Partnership is facing deep resistance from some political quarters in Washington ahead of the US presidential election in November.
The prime minister acknowledged the deal faced obstacles but he was confident Mr Biden's eloquence would help get it over the line.
Mr Biden congratulated Mr Turnbull on his recent election victory.
He said he had discussed innovation with business leaders, entrepreneurs and researchers and signed three agreements to share information on cancer.
Mr Biden lost his son Beau to brain cancer last year.
Mr Turnbull said Australia has no stronger alliance than that with the United States.
He said the two nations had a shared passion about "freedom, the rule of law, democracy and the right of very person to be able to aspire to realise their dreams".
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