A 34-year-old Australian security contractor has died at the Australian embassy in Baghdad, Foreign Minister Julie Bishop has confirmed.
There are reports the man was shot but the Federal Government would not confirm that, and said the circumstances of his death would be explored.
The man was working for Unity Resources Group, providing security services to the Australian embassy, Ms Bishop said.
She said the government extended its condolences to the family of the man over the incident and "all appropriate assistance" was being provided to his family.
Ms Bishop said a high level of security was being maintained at the embassy.
She also denied any decrease in spending by Unity Resources Group.
"There have not been funding cuts in relation to security," she said.
"We put out a competitive tender for security services and the company that won the tender was not the lowest tenderer.
"We have received guarantees and assurances about security."