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We report on observations of the iron K line in the nearby Seyfert 1 galaxy, NGC 3783, obtained in a long, 2 orbit (240 ks) XMM-Newton observation. The line profile obtained exhibits two strong narrow peaks at 6.4 keV and at 7.0 keV, with measured line equivalent widths of 120 and 35 eV respectively. The 6.4 keV emission is the K-alpha line from near neutral Fe, whilst the 7.0 keV feature probably originates from a blend of the neutral Fe K-beta line and the H-like line of Fe at 6.97 keV. The relatively narrow velocity width of the K-alpha line (<5000 km/s), its lack of response to the continuum emission on short timescales and the detection of a neutral Compton reflection component are all consistent with a distant origin in Compton-thick matter such as the putative molecular torus. A strong absorption line from highly ionized iron (at 6.67 keV) is detected in the time-averaged iron line profile, whilst the depth of the feature appears to vary with time, being strongest when the continuum flux is higher. The iron absorption line probably arises from the highest ionization component of the known warm absorber in NGC 3783, with an ionization of logxi=3 and column density of 5x10^{22}cm{-2} and may originate from within 0.1pc of the nucleus. A weak red-wing to the iron K line profile is also detected below 6.4 keV. However when the effect of the highly ionized warm absorber on the underlying continuum is taken into account, the requirement for a relativistic iron line component from the inner disk is reduced.