PM plays down wider SAS role in Iraq

Prime Minister Malcolm Turnbull has poured cold water on a call for Australian special forces to be directly involved in the fight against Islamic State in Iraq.

Former army chief Peter Leahy, who oversaw military operations in Afghanistan and previously in Iraq, says the nation needed to have a much sharper counter-terrorism strategy in its counter-insurgency efforts.

"We've spent a lot of time in both Afghanistan and Iraq trying to build nice governments and we really have not had any success," he told The Australian on Monday.

"The terrorists are still there."

General Leahy's aggressive approach would involve Australian special forces working with those from the US, Britain, France and others who have established bases within striking range of potential targets.

"We need a more robust approach to interdict and destroy terrorist base areas, training sites and support infrastructure."

Mr Turnbull said Australia already had special forces in Iraq, but their involvement was training local troops.

"They are guests of the Iraqi government," he told reporters in Canberra.

It was Baghdad's view that western forces should operate in a support role, behind the wire.

"We will continue to do that."