New Zealand's combat arm of the Defence Force was ditched by Labour so there is no issue of New Zealand joining the United States and Britain in contributing to air strikes.
But New Zealand is part of a troop training mission with Australia in Camp Taji, just north of Baghdad in Iraq with a total of 143 NZ Defence Force personnel.
Meanwhile Mr Key said the announcement by Australia that it would take 12,000 Syrian refugees on top of its 13,750 was similar on a per capita basis to the commitment New Zealand had made to take 600 Syrians on top of its annual quota of 750 refugees.
Mr Key said New Zealand would not be favouring Christina Syrians in its intake.
"There are billions of good, peaceful, decent Muslims around the world."
New Zealand would reserve its right to vet refugees for security issues but not for religion.