An Australian member of Parliament has slammed his country’s Federal Government initiative to cooperate with Iran in intelligence sharing agreement describing it as ‘dancing with the devil’.

Independent MP, himself a former intelligence analyst, said Iran was the last nation Australia should be swapping sensitive information with.

“The announcement by the Foreign Minister that Australia is entering into a security arrangement with the regime in Tehran really should send shudders down the spine of every Australian,” he told reporters in Canberra.

Foreign Minister, Julie Bishop announced the Iranian regime had agreed to trade information on Australian citizens fighting in Iraq, as part of efforts to counter the Islamic State militia.

Andrew Wilkie described the intelligence warned that Australia risked being used as a pawn and the information could not be trusted.

“When you start dancing with the devil in a place like Tehran, then we run the risk of becoming almost as bad as those who we dance with,” Mr Wilkie said.