Foreign Minister Julie Bishop said the circumstances surrounding the death of an Australian security contractor were being investigated.
An Australian security contractor working at the nation's embassy in Iraq has died in a "tragic incident", Foreign Minister Julie Bishop said on Friday, with reports that he was shot.
"I confirm the death of a 34-year-old Australian security contractor working at the Australian embassy in Baghdad," Bishop said in a statement.
"The government extends its condolences to the family of the Australian man over this tragic incident."
Bishop said the circumstances surrounding the death were being investigated, but gave no indication as to how the man, who was not named, died overnight.
She told reporters that as an investigation was underway, she could not go into details, but stressed that the death was unrelated to the "broader security environment" in Baghdad.
The Iraqi capital has been rocked by bombings in recent days in which dozens of people have died and which have been claimed by the ISIS terrorist group.
Reports said the man was fatally shot, with the Sydney Morning Herald reporting that a fellow worker at United Resources Group, which provides security at the embassy, was being questioned.
Bishop confirmed the dead man worked for the Australian-owned company.
"I am advised the high level of security is being maintained at the embassy," she added.
Australia withdrew its soldiers guarding the embassy in 2011, the last significant Australian troop presence in the country, leaving the compound in the hands of the private security firm.