Islamic State militants have threatened to behead Barack Obama and turn the U.S. into a Muslim province in the latest gruesome video to emerge from their self-styled caliphate.

The footage shows a black-clad jihadist standing over a Kurdish soldier who, in a sickening climax to the video, has his head cut off.

Before the hostage is executed, the ISIS fighter warns the U.S. president: 'Know, oh Obama, that we will reach America.

'Know also that we will cut off your head in the White House and transform America into a Muslim province.'

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Threats: Islamic State militants issued a direct threat at the U.S. president in their latest video

Sickening: The militant warns the Iraqi Kurdish leader Masoud Barazani: 'Every time you launch a missile, we will send you back the head of one of your soldiers'

The militant's threats do not stop at America, but also include a message for France and 'sister' Belgium.

He says: 'We advise you that we will come to you with car bombs and explosive charges and will cut off your heads'.

Earlier this month, jihadist gunmen killed 17 people in a terror attack in Paris. Days later Belgium intelligence services smashed a suspect Islamist plot to kill a police officer or judge.

The militant then saves his most personal attack for the Kurdish leader Masoud Barazani, who is currently leading the fight against ISIS in Iraq.

'As for you, oh Masoud (Barazani), you dog, we are going to behead you and throw you into the trash bin of history.

'Know that we are men who fear no-one. We will institute the laws of Allah, may he be exalted and praised.'

Gruesome: Memri TV discovered the latest video and translated it from Arabic. The threats do not stop at America, but also include a message for France and 'it's sister' Belgium

Referring to the Kurdish hostage, he continues: 'This is the fate of one of your soldiers, and every time you launch a missile, we will send you back the head of one of your soldiers.

'You are killing children and bombarding civilians while claiming that this is forbidden in your constitution.'

The video, which ends with the hostage being beheaded, was discovered by Memri TV which translated it from Arabic.

It emerged two days after Kurdish fighters expelled ISIS from the strategic Syrian town of Kobane on the Turkish border after months of fierce fighting.

The news prompted celebrations among residents who fled across the frontier into Turkey, with thousands gathering at the border in the hope they will be able to return home more than four months after the fighting first started.