Nato top brass have recommended that the military alliance join the international coalition fighting Islamic State (IS).
US President Donald Trump has demanded that Nato do more to combat terrorism.
Nato Military Committee head General Petr Pavel said "there is a merit for Nato becoming a member of that coalition".
Gen Pavel said armed forces chiefs agreed "that Nato can and should do more" to increase the capacity of Iraq and other countries fighting IS to better defend themselves.
Nato's role could include training local forces and helping to build militaries and institutions.
Nato countries do not want the alliance engaged in active combat against IS militants, even though all are individual members of the anti-IS coalition.
Mr Trump is scheduled to meet Nato leaders in Brussels next week.