Foreign Minister Marise Payne and Defence Minister Linda Reynolds will host their US counterparts Mike Pompeo and Mark Esper for the annual Australia-United States ministerial meeting in Sydney on Sunday.

Renewed tensions in the Middle East as Iran flexes its military muscle and the growing dominance of China in the Pacific region are expected to be the hot topics during the discussions.

Cabinet minister Mathias Cormann said no decision had been made as to whether Australia will join a US-led coalition aimed at protecting shipping in the Persian Gulf from Iranian military forces.

"These sorts of matters involve a lot of consultation with allies and relevant stakeholders," he told Sky News on Friday ahead of the meeting.

"No doubt this is going to be one of the matters that will be discussed (at the meeting) but from an Australian point of view, no decision has been made."

Australian and US defence personnel continue to work together side-by-side around the world, including in the Middle East, to pursue "our shared values and also our shared interests", Senator Reynolds said on Thursday.

But Greens leader Richard Di Natale is outraged that the Morrison government is even considering joining US-led military operations in another "misadventure" in the Middle East.

"We've seen this story before, we know how it goes and we absolutely cannot get sucked into this madness again,' Senator Di Natale said in a statement.

Labor leader Anthony Albanese, who will meet Mr Pompeo and Mr Esper on Sunday and Monday respectively following the ministerial talks, has also called for a peaceful approach to Iran.

He says it is not in the interests of the US to get into a situation of armed conflict with Iran.

Trade Minister Simon Birmingham is in Beijing for regional trade talks at a time of escalating tensions between China and its autonomous territory Hong Kong and the fear of military action being taken.

"Australia respects the one country, two systems model," Senator Birmingham told reporters.

"We urge and appropriate caution, restraint and respect for those two systems."

Dr Esper has accused China and Russia of seeking to displace the US and "shift the balance of power in their favour".

He believes a strong network of like-minded nations that are willing and able to fight together is an advantage over their adversaries.

Mr Pompeo will arrive in Australia on Saturday after having visited Bangkok to co-chair regional meetings.

The secretary of state will meet Prime Minister Scott Morrison at the summit on Sunday before heading to Micronesia on August 5.

Australian Associated Press