Australia will deploy a military force to the Middle East as part of international efforts to combat Islamic State extremists.

Prime Minister Tony Abbott says Australia has received a specific request from the US Government to contribute forces to possible military action in Iraq.

He's told reporters in Darwin that cabinet and the National Security Committee met today and the government has decided to prepare and deploy a military force to the United Arab Emirates as part of an international coalition.

Australia's contribution will include up to eight Super Hornet aircraft, an early warning and control aircraft, aerial refuelling aircraft and a contingent of Special Forces troops.

Special forces troops will act as military advisers to Iraqi and other security forces fighting Islamic State extremists.

Mr Abbott warned Australia's involvement could last many months, rather than weeks.

He said he was not aware of any Australians being held hostage by IS terrorists.

The Islamist group has released a video purportedly showing a masked militant killing British aid worker David Haines, who was taken hostage in Syria in March 2013.

Mr Abbott's reaction to the beheading - the third in recent weeks - was one of "shock, horror, outrage and fury" and he now had a steely determination to tackle the perpetrators.

"The evil and exaltation in evil that was yet again on display today, should make all of us more resolved than ever to do whatever we reasonably can to disrupt, degrade and if possible destroy this movement," he said.

He would not call the movement Islamic State because it was neither Islamic nor a state.

"It is a death cult," Mr Abbott said.