Iraqi federal forces, Sunni tribes and Shi'ite militias have retaken Dhuluiyah town from the ISIS group, in one of the most significant victories over the Terrorists.

Iraq's military announced all Terrorist had left the town.'Dhuluiyah has been completely cleared of IS,' Lieutenant General Mohammed al-Askari, the defence ministry spokesman, told AFP.

'The Iraqi army, as well as volunteers from the tribes and popular brigades, entered Dhuluiyah and have now reached the office of the mayor,' he added.

Residents and fighters said several hundred Terrorists had fled the town.

When Islamic State fighters tried to storm the Tigris River town of Dhuluiya north of Baghdad this week, they were repelled by a coalition of Sunni tribal fighters inside the town and Shi'ites in its sister city Balad on the opposite bank, Reuters reports.