The Prime Minister's says he's happy to meet Moslem leaders in New Zealand to discuss the Isis threat but he says he'd have to taker legal advice before telling them who's on the Government's watch list.

John Key says he's going to a mosque soon but he's willing to meet them in a more formal setting if that's what they want.

"The vast bulk of Muslim New Zealanders are great decent peace loving good people, but unfortunately there are a group of people who want to associate with ISIL and they present a domestic threat."

Meanwhile Australia and New Zealand have officially agreed to work together in Iraq.

The Australian Federal Cabinet has signed off on sending 300 Australian troops to train Iraqi military.

Prime Minister John Key says Australia was always our preferred option because they're great partners.

"They know what they're doing. They too will be sending force protection people, so that's an added level of support for our people."