Australia, Iran agree to share intelligence in fight against IS in Iraq

Australia and Iran have reportedly agreed to share intelligence in the fight to take on Islamic State (IS) in Iraq, Foreign Minister Julie Bishop has said.

Bishop, who was in Tehran for the first high-level talks between the two nations in more than a decade, said that the national leadership was "very agreeable" to share intelligence, particularly on the Australian jihadists fighting alongside IS in Iraq, reported The Guardian.

Following a meeting with Iran's President Hassan Rouhani, Bishop described the agreement as an "extraordinary deal" that will have beneficial outcomes in the fight to tackle global terrorism.

However, she refused to comment on whether there was a conflict of interest in sharing information with Iran which could ultimately be used to capture or kill Australian fighters.

The leaders also acknowledged that the challenge posed by IS was one of the most significant global threats at present.

Bishop dismissed suggestions that the informal arrangement would strain ties with Israel and the United States.

Australia had been in talks with Iran to come to an intelligence-sharing arrangement for months but the diplomatic push to seal an agreement intensified in the wake of Sydney's Lindt cafe siege in December, in which two hostages and the gunman, Man Haron Monis, were killed.

At least 100 Australians are believed to have joined the ranks of the IS in Iraq and Syria.