A 34-year-old security contractor has been killed at the Australian Embassy in Baghdad, the government has confirmed.

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The office of the Minister for Foreign Affairs, Julie Bishop, released a statement confirming the victim was an Australian employee of the Unity Resources Group working at the embassy.

A 34-year-old security contractor was killed while working the Australian Embassy in Baghdad, the government has confirmed. Photo: AAP

"I confirm the death of a 34-year-old Australian security contractor working at the Australian Embassy in Baghdad," the statement read.

"The Government extends its condolences to the family of the Australian man over this tragic incident. All appropriate assistance is being provided to his family.

Photo: Yahoo7

"The circumstances surrounding his death will be thoroughly investigated.

"He was working for Unity Resources Group, providing security services to the Australian Embassy.

US soldiers and an Iraqi policeman are at the scene of a 2005 car bombing in Baghdad located near the Australian Embassy. Photo: AP/Mohammed Uraibi

"I am advised the high level of security is being maintained at the Embassy.

"In light of the ongoing investigation, and out of respect for the man’s family, the Australian Government will not provide further comment at this time."

Australian troops aboard an armoured personnel vehicle pass by a checkpoint guarded by an Iraqi policeman at a junction near the Australian embassy in Baghdad, Iraq July 25, 2004. Photo: AP

There are unconfirmed reports the man was shot in the head by a co-worker after they were drinking in a contractor's accommodation hall on Thursday morning Iraqi time.

The Unity Resources Group provides security to Australian diplomats and staff at the embassy and in the Iraqi capital and Yahoo7 has contacted them regarding the incident.

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