Syrian government forces have recaptured the ancient city of Palmyra, state media and a monitoring group said, inflicting a significant defeat on the Islamic State group which had controlled the desert city since May last year.

Syrian television quoted a military source saying the army and its militia allies took "complete control over the city of Palmyra".

The Syrian Observatory for Human Rights said there was still gunfire in the eastern part of the city on Sunday morning but the bulk of the Islamic State force had pulled out and retreated east, leaving Palmyra under government control.

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