The German Defence Minister, Mr Peter Struck, has ruled out for now sending troops to Iraq but said Berlin would wait and see how the debate inside the UN developed before making a final decision.
The government in Berlin is coming under increasing pressure to clarify its position on Iraq following last week's attack on the UN's headquarters in Baghdad.
The Chancellor, Mr Gerhard Schröder, won last year's general election partly due to his promise not to participate in any "military misadventures" in Iraq.
But now speculation is growing that next month's UN conference to be held in New York could open the door to a new situation.
Last week the Chancellor said the rebuilding work in Iraq was "naturally a key issue" and that peace and stability in the Middle East were in Germany's national interest.
Mr Christophe Berntram, head of a government-sponsored Science and Politics Foundation think-tank, told Der Spiegel magazine yesterday that the UN would take over in Iraq "sooner or later".
If in that case the UN engaged NATO in a security function, he said, it would be very difficult for Germany to say, "We're not going to be there".
Earlier this month Mr Struck said Germany would not have a reason to oppose an engagement in Iraq if approved by the UN, an opinion shared by Dr Angela Merkel, the leader of the opposition Christian Democrats (CDU).
"If NATO plays a role within a UN framework and Germany has the necessary capacity then we cannot look away," she said.
German troops are already stationed in the Balkans and Kabul, and Berlin is anxious not to overextend itself any further.