Australia has moved to increase cooperation between its security agencies against the threat of Islamic State militants by appointing two new counterterrorism coordinators.

Greg Moriarty, a former ambassador to Indonesia and Iran, on Monday became Commonwealth Counterterrorism Coordinator, heading an office within Prime Minister Tony Abbott's department.

Moriarty will be responsible for coordinating security agencies within the Attorney-General's, Defense and Foreign Departments.

Justice Minister Michael Keenan has taken on the new portfolio of Minister Assisting the Prime Minister on Counterterrorism, focusing on coordinating efforts against home-grown terrorism.

The government will this week detail plans to change citizenship laws to allow terrorists to be stripped of their Australian citizenship if doing so does not leave them stateless.