According to al-Alam reporter, the army has gained full control al-Bahdaliye district located south of the shrine of Sayyida Zainab (PBUH).
Syrian state television said late on Wednesday that the government troops managed to push large number of the militants out of the region.
The militants claimed earlier that they took control of a hospital in a village south of the neighborhood.
The shrine is located 16 kilometers (10 miles) south of the capital. Hazrat Zeinab (AS) is the daughter of the first Shia Imam, Imam Ali (PBUH), and Hazrat Fatemeh (PBUH) -- Prophet Mohammad's daughter.
This is while large explosions were also ripped through suburbs of Damascus on Wednesday as the violence in the two year old civil war continued across the country.
Some clashes were also reported in the northern suburb of Irbin.
In Rastan, just north of Homs, the army troops were also engaged in massive mop-up operations against the militant groups.