The aid is to focus on minority groups and vulnerable women and children.
Ireland will provide 250,000 euro to the United Nations Children's Fund (UNICEF) and a further 250,000 euro to the International Committee of the Red Cross (ICRC).
The Foreign Affairs Minister Charlie Flanagan said “The plight of the most vulnerable, particularly, children, women and elderly people is increasingly desperate and Ireland is doing all it can to provide urgent life-saving assistance. Children are the most at risk and worst affected by violence and displacement.”
“Ireland condemns in the strongest possible way deliberate attacks on Iraqi civilians and calls on all parties to the conflict to ensure safe passage of displaced populations and delivery of humanitarian assistance.”
While the Minister of State for Development Seán Sherlock has reiterated his grave concern for the civilian and minority populations in northern Iraq.
“It is clear that an appalling humanitarian crisis is looming in the region which has already suffered the impact of three years of war in Syria. Ireland stands ready to provide further humanitarian assistance within our means.”
“In addition to the 655,000 euro that Ireland has already provided in response to the Iraq crisis this year, this further funding will bring vital life saving assistance to hundreds of thousands of Iraqi civilians trapped by the fighting.”
The US meanwhile has sent a further 130 military advisers to the Kurdish region of northern Iraq.
A defence official says the marines and special operations forces will assess the humanitarian situation and will not be engaged in combat.
The US has been carrying out air strikes against fighters from militant group Islamic State (IS). Up to 30,000 civilians remain trapped in makeshift camps in the area.
Reporter Sherine Tadros is in Dohuk in northern Iraq.
“This is essentially a piece of land that is owned by a Kurdish businessman – he found last week a coupe of families just squatting on his land (and) he gave them some food and water” she said.
“And over the course of the last seven days, between 6,000 and 8,000 Yazidis have actually made their way here” she added.
