SYDNEY - United States Secretary of State John Kerry on Tuesday urged Iraqi prime minister-designate Haidar al-Abadi to form a new cabinet as soon as possible to create an " inclusive and participatory" government.

Kerry said the answer to Iraq's stability is a political solution, not a military one, and vowed not to send in ground forces to fight the extremists.

"We are urging him to form a new cabinet as swiftly as possible and the US stands ready to support a new and inclusive Iraqi government and particularly its fight against ISIL," he told reporters at a press conference in Sydney after annual security talks with Australian government leaders.

"We have always wanted an inclusive, participatory government that represents the interests of Shia, Kurd, Sunni minorities - all Iraqis."

Kerry said the United States will continue to consider requests for help from a new Iraqi government and has agreed to move military equipment to the Kurdish capital of Erbil.

But he repeated US President Barack Obama's promise that there would be no return of US combat forces.

"Nobody, I think, is looking towards a return to the road that we've traveled," he said.

"There will be no reintroduction of American combat forces into Iraq. This is a fight that Iraqis need to join on behalf of Iraq."

Kerry said the United States was prepared to consider additional political, economic and security options to help stabilize the security situation, expand economic development and strengthen Iraq's democratic institutions.

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