The Prime Minister says US president Barack Obama has welcomed New Zealand's contribution to the fight against Islamic State.
After talking with Mr Obama at the APEC meeting in Beijing, John Key said there was potential for New Zealand forces to work with Australia to train Iraqi forces.
Mr Key said he was firmly of the view that any kind of military involvement by New Zealand was best directed at training people and that the president and he were in agreement the real challenge in Iraq was one of diplomacy.
"He and I are very much on the same page. You need some military capability, you clearly need to try and control and rein in ISIS, but if you're really looking for a long term solution, it's got to come from people who feel they are part of the long-term solution for Iraq."
Mr Key said Mr Obama is keen to come to New Zealand before the end of his presidency at the beginning of 2017 depending on his busy schedule.