The federal government has indicated it could abandon its long-held position that Syrian President Bashar al-Assad must step aside as part of any durable peace settlement.
The major policy shift reflects the emerging international consensus that the Assad regime would probably be pivotal in preventing further gains by terrorist group Islamic State.
Foreign Minister Julie Bishop said it was becoming evident, with Russia backing Mr Assad, that his regime might have to be part of a national unity government.
While attending the United Nations General Assembly in New York, Ms Bishop said the reality was Mr Assad was still in Syria and Australia had to be open to all options to end the bloodshed.
"We must find a creative way of trying to bring some kind of peace and security and unity to Syria so Australia's view is that all options should be considered," she told ABC television in New York.
Australia recently expanded its air operations against Islamic State to Syria in an effort to collectively defend Iraq and its borders from the terrorist group.
On Saturday morning (AEST), Ms Bishop also held "positive" talks with her Egyptian counterpart Sameh Shoukry about a possible pardon for Australian journalist Peter Greste's terror charges in Egypt.
Ms Bishop appeared confident Greste's name would be cleared, after receiving assurances from Mr Shoukry that his pardon hinged on a "technical or legal hurdle" because he was not in the country for the trial.
The Australian journalist's fellow Al Jazeera reporters Mohamed Fahmy and Baher Mohamed were pardoned earlier this week and walked free from an Egypt prison.
Greste's name was not on that list and he remains a convicted criminal.
"However, (Mr Shoukry) made it clear they would either change the law or the president would consider being able to use his power as president to achieve the same result," Ms Bishop said.
Greste cautiously welcomed the news.
"It is great to know, to get that kind of reassurance," he said.
"But I guess from us it's not over until it really is over. It's not over until we get the formal pardons that all of us deserve."
Greste and his two colleagues were arrested in December 2013 and charged with aiding a terrorist group.
Earlier, Ms Bishop joined world leaders in endorsing 17 "ambitious" anti-poverty goals.
They include ending poverty, promoting sustainable agriculture, ensuring healthy lives and quality education and empowering women and girls.
Combating climate change and promoting peaceful and inclusive societies are also listed.
While in New York, the foreign minister will also speak at a summit hosted by US President Barack Obama where she is expected to call for a greater effort to defeat Islamic State.
She will also address the UN Security Council on the collective action needed to end the conflicts in the Middle East and discuss the humanitarian crisis and international counter-terrorism initiatives with leaders.
Former prime minister Tony Abbott had been scheduled to attend but his successor Malcolm Turnbull decided not to go.
