FOREIGN minister Julie Bishop has reached a deal with Baghdad for the deployment of about 200 special forces to assist Iraqi troops in their fight against jihadists.

Ms Bishop told reporters in Baghdad on Sunday that she had hammered out a deal allowing Australian commandos who have been waiting in the United Arab Emirates, to deploy to Iraq.

Ms Bishop also reiterated that Australian forces would be deployed in an advisory capacity and that Canberra had no plans to send ground troops to fight alongside Iraqi forces.

Where is $500M going to be spent? Not on 8 aircraft and 200 advisers that’s for sure and not if we are charging the Iraqi government for the job.