According to Iraqi military sources, army troops backed by Kurdish forces and Shia fighters retook the town from the ISIL cult on Monday.
"Sulaiman Bek is under the control of the combined forces," media outlets quoted a senior army official as saying.
The ISIL militants had turned the key town in Tuz Khurmatu to a key stronghold in Salahuddin province for 11 weeks.
Security sources say the town is still a dangerous place because of the bombs planted by the terrorists.
Reports say the ongoing fierce fighting between the two sides has now transferred to the nearby village of Yankaja.
The liberation of Sulaiman Bek comes a day after the military troops finalized their grip over the neighboring town of Amerli.
Amerli residents had put up fierce resistance against the militants despite severe shortages of food and water.
The residents of this small Shia Turkmen community about 180 km (110 miles) north of Baghdad have been living under the ISIL siege for more than two months.
UN had earlier warned that Shia Turkmen residents of the volatile town who are besieged by the ISIL Takfiri terrorists could be massacred if urgent action was not taken to rescue them.
RA/SHI