"Dozens of Huthi fihters and their allies arrived in armoured troop carriers and entered Al-Maashiq presidential palace," said the official, who witnessed their advance into the complex.
Hadi fled to Saudi Arabia last week as the huthis bore down on Aden.
Meanwhile Saudi-led aggression in Yemen continues. This attacks leave 1000 killed and injured in a week.
A suicide bomber attacked a large gathering of Shiite Huthis on Wednesday in central Yemen killing at least 24 people and wounding 48, a Huthis spokesman said.
A local spokesman for the Houthi said a suicide bomber blew himself up at the event, killing the head of the cultural centre.
The spokesman said the governor of Ibb province had been at the event, but was not wounded.
Yemen's powerful local al-Qaida affiliate has targeted Houthi in the past.
Two other explosions rocked Ibb following the first attack, according to a statement by the Houthis.
Today also Al-Qaeda militants stormed a prison in southeastern Yemen, freeing several hundred inmates including one of their leaders, a security official said.
Khalid Batarfi, a senior al-Qaeda figure who had been held for more than four years, was among more than 300 prisoners who escaped from the jail in Hadramawt province, the official told AFP.
yesterday At least 37 people were killed when a dairy in western Yemen was bombed overnight, an official said Wednesday after a seventh night of Saudi-led air strikes against Yemen.