Canberra, May 13 (IANS): An Australian security official working at the embassy in Iraq's capital Baghdad was shot dead during a gunfire, authorities confirmed on Friday.

Foreign Minister Julie Bishop confirmed the news, after an alleged exchange of gunfire killed the man while he was stationed at the embassy on Wednesday, Xinhua news agency reported.

"I confirm the death of a 34-year-old Australian security contractor working at the Australian Embassy in Baghdad," Bishop said in a statement released on Friday.

"The circumstances surrounding his death will be thoroughly investigated."

Bishop said the man was a former member of the Australia's Special Air Service regiment, and was working as part of private security detail Unity Resources Group, which protects Australian diplomats stationed overseas.

She said despite the tragic death of the worker, other staff members were currently being protected by a "high level of security".