The army forces facing sporadic fighting with remnant of ISIS terrorists around the town.
Two officers from the 9th Division confirmed troops had captured the government compound and raised the flag over it, AP reported.
Hamdaniyah is around 20 kilometers from Mosul. Iraqi forces launched a wide-scale offensive earlier this week aimed at retaking Mosul, the country's second largest city, which fell to ISIS in 2014.
Iraqi forces are now around 15 kilometers (9 miles) from Mosul.
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