"The second thing it will do will examine what we think is happening with Islamic State and what are the range of options available to us," Mr Key said.
"One thing that came through with our discussion with Tony Abbott on Friday night certainly is that while the position in terms of the response from these countries which are getting involved is evolving, it's not as clearly defined or fully defined because the situation is literally developing in Iraq."
Deploying the SAS on the front line against Isis remained an option on the table, Mr Key said.
"If you look at the rhetoric from Tony Abbott in the public domain over the course of the last month or so, he's been very, very, very strong and I think he sees domestic threats and regional and international threats as we do.
"Overall, we would concur with his view that a growing Islamic state is a very frightening prospect and a dangerous one.
"I think where we just need to work through is what could each country do if we were prepared to do it."
Australia had already deployed Hornet fighter jets and 182 special forces troops to the fight against Isis, Mr Key said.
Labour's foreign affairs spokesman David Shearer said they had been involved in discussions with the Government about proposed changes to passport controls, but had yet to discuss the rational for a deployment to Iraq.
"We've said to them on the first issue that we would want to work responsibly with them and if there's a need to make some changes with a sunset clause until a bigger review, we would look at that favourably."
However, Mr Key had yet to make the case for a New Zealand deployment to Iraq, Mr Shearer said.
"Australia, the UK and obviously the US have become involved, but remember - they were the three countries that were involved in Iraq back in 2003 and arguably Iraq is in the state that it's in as a result of that invasion.
"We weren't part of that - we don't have the same responsibility in terms of 'if you break it, you fix it'."
