Nechirvan Barzani told the BBC it would be difficult to find a resolution with Iraqi Prime Minister Nuri al-Maliki in power and recommended an autonomous region for Sunnis as a potential solution.
ISIL militants launched their lightning offensive in Iraq's second city Mosul a week ago.
In the latest fighting yesterday, Sunni militants took control of several neighbourhoods of Tal Afar, between the now rebel-held Mosul and the Syrian border.
"Now we have to sit down and find a solution, find how to live together... But if we expect, if we think that Iraq will go back like before Mosul, I don't think so, it's almost impossible."
He said a political rather than military solution was needed to the unrest, taking account of Sunnis' feeling of being "neglected" by government policies.
Asked whether a solution was possible with Maliki in power, he said: "There is no trust right now we have to be honest... In my view it's difficult."
ISIL militants are said to have killed scores of Iraqi soldiers as they pushed towards the capital, a massacre that has drawn international condemnation and prompted diplomatic evacuations in Baghdad.
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