Australia's Foreign Minister Julie Bishop says a decision on military involvement in Iraq will be made in a matter of days now the prime minister has returned from the United States.
Tony Abbott took part in security talks at the United Nations in New York, and the government is expected to sign off on Australia's deployment this week.
RAAF Super Hornet jets are on standby in the United Arab Emirates for targeted strikes in Iraq, while a contingent of special forces is ready to advise Iraq and Kurdish forces fighting Islamic State extremists.
AAP reports a meeting of the national security committee will be held this week, followed by a cabinet meeting to discuss Australia's role.
The timing of a cabinet decision would be in a matter "of days", Ms Bishop said.
About 40 countries, including several from the Middle East, have now joined the US in taking action against IS though most of the western countries involved will fly missions only in Iraq.