"We obviously have a full Cabinet process to go through before we can decide to do anything of that sort," he said yesterday.
One of the big challenges as far as the Palestinians were concerned would be to get agreement on a security zone.
"Quite what that will look like none of us can know but I think it is reasonable to expect that some sort of international presence there would be required.
"I think it is the sort of thing New Zealand would expect to be asked and I think the international community would expect us to give some sort of positive answer."
Mr McCully discussed support for the Middle East peace process with other Foreign Ministers last week in Bali where countries in the Asean group met Latin American Foreign Ministers. There was a strong desire to see some progress.
Commenting on the US decision to provide weapons to rebels in Syria, citing the use of chemical weapons against them, Mr McCully said it was too early for New Zealand to have a view about any response from the United States on getting involved there.
There was a mounting body of credible evidence that chemical weapons had been used and that was profoundly disturbing. He was waiting for further information on what was planned.
"It's a time for us look carefully at what is developing rather than be too bold in our statements."
Asked about the results of Iran's presidential elections in which moderate candidate Hassan Rowhani will succeed Mahmoud Ahmadinejad, Mr McCully was cautiously positive.
"All of the players in Iran, wherever they are on the spectrum, take some positions that we would regard as unhelpful so we should not be starry-eyed about this," he said.
"But it does bring a new person into the discussion and that is always a very hopeful and positive thing when things have been as difficult as they are."