"The Yemenese Government have requested support from the Americans in the form of those drone strikes against Al Qaeda. As you've seen in the past, I haven't condemned that' Far from it, I've actually said that those terrorists are undertaking literally terrorist activities."
Key said it was "correct" that a drone strike wouldn't be considered the same as a war. "It would be at the invitation of the Iraqi Government against a designated terrorist group."
However, New Zealand won't be asked by the US to offer a view on drone strikes, Mr Key said, "any more than we're asked to offer a view in Yemen, and that's ongoing, when we've been pitching for the Security Council seat."
The Herald on Sunday reported on June 8 that New Zealander Daryl Jones, also known as Muslim bin John, was killed by a drone in Yemen in November last year.
Jones had been known to New Zealand's Ministry of Foreign Affairs and Trade since May 2012.
Mr Key said it was possible friendlier relations with the US mean we would now see a nuclear vessel visiting New Zealand.
"It would require whoever the prime minister of the day is to sign that piece of paper that says it's either not carrying nuclear weapons or not nuclear fuelled," Mr Key said.
"But I think that's possible one day."