"... The Iraqi government and other anti-Isil forces are not reacting quickly enough to contradict Isil's online messages which have been used both to recruit new fighters and demoralise those who oppose them, and we should help them with this," Mr Turnbull said in Washington.
The 15-minute video, which was professionally produced, includes the filming of the execution of four men, who are shot in the back of the head at close range as they kneel on the ground with their hands bound.
Footage of various attacks is also shown, as are appeals for new recruits.
It also features a martyrdom video of an Islamic State fighter as he prepares to carry out a suicide bombing using a vehicle laden with explosives. The video shows the man driving the vehicle towards an enemy base, followed by a massive explosion.
-AAP