However, Mr Key said he had no intention of extending the two year term even if Australia stayed on longer. Australia has an open-ended deployment which it reviews annually.
Mr Key said New Zealand peacekeepers had been in Sinai for decades "and I don't think we want to be in Iraq for decades.
"I don't think we want to be in Iraq for decades. I do think there's a contribution we can make, I think we are making a genuine contribution and it's working. But frankly, I haven't seen a strong case for us to stay beyond two years."
Overall about 24 countries of the 60 in the US led coalition have a military involvement.
He said New Zealand would not necessarily consider staying longer even if Australia, the US or Iraq requested it. "Every country runs its own foreign policy initiatives and makes its own call. We do things sometimes that are different to Australia."
He did not know whether that would change under the change of leadership from Tony Abbott to Malcolm Turnbull."
Mr Key sent the training troops to Iraq with the consent of the Iraqi Government. Mr Key has previously said the only other circumstance in which New Zealand would consider military involvement was under the mandate of a Security Council resolution.