The US is reportedly threatening to reject Iraq's calls for air strikes against advancing militants, unless Prime Minister Maliki stands down.
Vice President Joe Biden says Maliki must install a Unity government, encompassing Shia, Sunni and Kurdish members.
The Sunni ISIS militia has seized vast areas of Iraq, and is moving in on the capital Baghdad.
Colin Freeman is The Sunday Telegraph's Chief Foreign Correspondent - he told Newstalk's Breakfast the US is unlikely to send troops make to Iraq and may balk at airstrikes, instead choosing to provide supplies:
The Iraqi government has said its forces have repelled repeated attacks by insurgents on the country's largest oil refinery and retaken parts of Tal Afar on the Syrian border.
Lieutenant General Qassim al Moussawi said 40 insurgents were killed in fighting at the refinery in Baiji on Wednesday.
Prime Minister Nouri al Maliki said his forces were "striking back" after a "shock" defeat at the hands of Sunni militants.
The government has asked the US to carry out air strikes to help reverse gains made by ISIS.
The US military has said it has started flying manned and unmanned drones over Iraq.
It is claimed up to 450 British nationals have joined the group which has been taking over Iraqi towns and cities.
Lahur Talabani made the comment as he appealed for the West to supply weapons and ammunition to help their forces combat Islamist fighters.
And he is warning that the head of ISIS will use British-born militants to attack their own country, if the international community fails to intervene in the crisis: