Iraqi forces are flushing the last ISIS fighters out of hiding in Mosul a day after the city was declared liberated from the terror group.

Half-naked fighters were paraded through the streets while others were bundled out of an armoured vehicle.

Meanwhile airstrikes pounded parts of the Old City amid fears that fighters are waiting in ambush and have left behind explosive traps.

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Iraqi security forces are still fighting to flush the last ISIS fighters from Mosul's Old City a day after it was declared liberated (pictured, a captured jihadi)

More than 2,000 ISIS fighters were killed in Mosul while many more fled, but government forces believe some are still hiding in the Old City

Government forces have been rounding up men they accuse of being part of ISIS (pictured, a suspected militant)

Detainees are brought to a screening centre where they are questioned, before being moved into detention (pictured, a suspected fighter)

Mohammed Abd Hamad, 20, a suspected ISIS militant, was captured by Iraqi special forces after being surrounded in the Old City of Mosul

It has taken eight months for Iraqi forces to secure Mosul, including five months fighting for control of the Old City, where these men were captured

US Commanders said fighting in the Old City (pictured) was the most intense urban combat seen since the Second World War

Special forces escort two captured men, believed to have been ISIS members, out of the Old City and into detention

Bombs continued to be dropped on Mosul's Old City on Tuesday, despite victory having been declared against ISIS

Iraqi security forces called in airstrikes against remaining ISIS positions on Tuesday

The bombing raids came as Iraqi commanders said ISIS had captured a village to the south of Mosul after fleeing the fighting

As the battle drew to a close, Lieutenant General Stephen Townsend, the top U.S. Commander in Iraq, warned the government must now ensure that 'ISIS 2.0' does not rise from the ashes of the city.

He told the BBC: 'If we're to keep... ISIS 2.0 from emerging, the Iraqi government is going to have to do something pretty significantly different.

ISIS 'admits leader died in airstrike' ISIS has finally admitted its leader Abu Bakr al-Baghdadi is dead, according to reports in Iraq. The terror group is said to have confirmed that the 45-year-old was killed in an air strike in the Iraqi province of Nineveh. Reports claim ISIS fanatics are scrambling to find a successor to the terror chief, who announced the formation of the group's so-called caliphate in Mosul in 2014. A ban on jihadis talking about the leader's death has now been lifted, according to a source who spoke to Iraqi media. If confirmed, his death would mark another devastating blow to the jihadist group after its loss of Mosul. Advertisement

'They're going to have to reach out and reconcile with the Sunni population, and make them feel like their government in Baghdad represents them.'

His sentiments were echoed by one diplomat in Washington who spoke anonymously to Reuters ahead of a meeting of 72 nations this week to discuss how the world moves forward in the Middle East.

'I think everyone has learnt the hard way that unless you stick around and get the job done, we'll be back there again in 10 years' time,' the diplomat said.

Their warnings came as ISIS fighters fleeing Mosul captured the village of Imam Gharbi, to the south, deploying guerrilla-style tactics.

Militants armed with machine guns and mortars have now seized more than 75 percent of the village, located on the western bank of the Tigris river some 44 miles south of Mosul, and reinforcements are expected, the Iraqi army said.

Islamic State launched its attack on Imam Gharbi last week, in the kind of strike it is expected to deploy now as U.S.-backed Iraqi forces regain control over cities the group captured during its shock 2014 offensive.

Lieutenant General Stephen Townsend (left) has hailed an 'historic' victory over ISIS in Mosul, but says the terror group will renew itself if the government fails to reach out to Sunni Muslims

Iraqi forces fight to rid Mosul of the last ISIS fighters shortly before Prime Minister Haider al-Abadi announced victory over the group

While the city is now 'firmly' under the control of Iraqi forces, there are fears terrorists hiding among the civilian population will launch revenge attacks

A plume of smoke rises from Mosul's Old City where sporadic fighting was still taking place on Monday afternoon

Iraqi security forces search blown-out buildings for ISIS fighters who could be in hiding

A member of the Iraqi armed forces patrols the Old City in Mosul after victory against ISIS

ISIS itself used to be part of al-Qaeda before splitting from the group in 2014 as western forces withdrew from Iraq, before establishing its so-called Caliphate (pictured, an Iraq soldier holds a captured ISIS flag)

Stripped of Mosul, IS's dominion in Iraq will be reduced to mainly rural, desert areas west and south of the city.

Islamic State also faces pressure in its operational base in the Syrian city of Raqqa, where U.S.-backed Syrian Kurdish and Arab forces have seized territory on three sides of the city.

The campaign to retake Mosul from the militants was launched last October by a 100,000-strong alliance of Iraqi government units, Kurdish Peshmerga fighters and Shi'ite militias, with a U.S.-led coalition providing key air and ground support.

Abadi's government in Iraq now faces a difficult task managing the sectarian tensions which enabled Islamic State to gain supporters in the country among fellow Sunnis who say they were marginalised by the Shi'ite-led government.

Shia Muslims make up about 65 per cent of Iraq's population, with Sunni Muslims making up about half that number.

While the Sunnis held almost all positions of power in Saddam Hussein's Ba'ath Party, since his execution they have complained of being sidelined by the Shia-majority government in Baghdad.

Smoke rises over Mosul's Old City as members of the security forces stand guard

US commanders say the fight to retake Mosul's Old City saw the most intense street combat since the Second World War

Iraqi serviceman carries a rocket-propelled grenade past armoured trucks as the security services patrol Mosul's Old City

Iraqi troops have been celebrating their hard-won victory in central Mosul after months of fighting to reclaim the city from ISIS came to an official end yesterday

More than 1,000 Iraqi and coalition troops died in the fight for Mosul, according to official estimates, with ISIS suffering losses close to double that

Iraqi forces will now have to help rebuild the city, much of which was destroyed by the heavy fighting which lasted eight months

Bruce Hoffman, a security expert at Georgetown University, in Wasington DC, said that feeling is likely to be exacerbated now ISIS has been displaced.

The majority of the fighting in Iraq has been focused on Sunni population centres such as Mosul, Fallujah and Ramadi which now lie in ruins.

'It's almost at a new level of divisiveness and an unrelenting decade of bloodletting has made any sense of rebuilding a civil society unbelievably challenging,' Hoffman said.

With Mosul now gone and the battle to retake Raqqa well underway, the age of ISIS as a territorial power is almost over, but the group is far from dead and buried.

Firepower used in Mosul was 'excessive' Iraqi and coalition forces fighting ISIS in Mosul have been accused of using unnecessarily powerful weapons in civilians areas. An Amnesty International report accuses coalition forces of using 'imprecise weapons with wide-area effects' even when it became clear ISIS was using civilians as human shields. While the report notes that ISIS is also responsible for serious abuses, it said that does not excuse opposition forces for killing what it calls a 'huge number' of innocent civilians. The report's authors are calling for an investigation into the number of civilians killed by government fighters. Advertisement

Instead it is seeking out unstable regions of the world - such as north and central Africa and the Philippines, in which to establish new frontlines.

Colin Clark, an analyst with the RAND think tank, told Associated Press: 'They [ISIS] are going to seek out these weak states. They're going to insinuate themselves in local conflicts.'

And while its so-called Caliphate may be no more, its presence in the Middle East as a guerrilla organisation will continue for some time.

This much was evident with a series of devastating bomb attacks across the region during Ramadan - including an attack on an ice cream shop in Baghdad, Iraq.

Another huge truck bomb stuck the German embassy in Kabul, killing 90 and wounding hundreds more, though no group claimed responsibility. ISIS and al-Qaeda have been active in the city.

Washington meetings Tuesday through Thursday will focus on ways to intensify a multi-pronged campaign against Islamic State, according to the State Department.

That campaign and the overall military strategy were set under Trump's predecessor, U.S. President Barack Obama.

Trump's post-conflict strategy, as described by U.S. officials, follows two tracks.

The United States, they say, will support a robust Iraqi- and United Nations-led effort to stabilize liberated areas in Iraq, where American officials say they have a reliable partner in Prime Minister Haider al-Abadi.

Soldiers were not the only ones celebrating the downfall of ISIS as civilians in the city of Kerala also took to the streets cheering and waving flags

Cars honked their horns as people waved Iraqi flags in Baghdad to celebrate the defeat of ISIS

People celebrate victory over the terror group in Tharir Square, Baghdad

While the end of ISIS as a territorial power in the Middle East is nearing an end, the region is still vulnerable to guerrilla attacks as evidenced by the attack on an ice cream shop in Baghdad and the German embassy in Kabul (pictured) during Ramadan

ISIS is also seeking out new frontlines by expanding into unstable regions around the world, including in Marawi, in the Philippines (pictured)

But amid Syria's ongoing civil war, Washington is pursuing a more cautious, localized stabilization plan.

Initial stabilization efforts are already underway in eastern Mosul, but officials said the western part of the city, where fighting was more intense, will be the greater challenge.

Nearly 1 million civilians fled the city, according to the United Nations. 'This was beyond our worst-case scenario and we're still one step ahead,' thanks to $1 billion in funding pledged last year, said Lise Grande, U.N. Humanitarian Coordinator for Iraq.

Across Iraq, 1.9 million people have returned home, Grande said, adding 'I'm not sure you would have bet on this.'

Top Trump aides, including national security adviser H.R. McMaster and Defense Secretary Jim Mattis, commanded U.S. troops in Iraq and remain committed to the country's security, diplomats and analysts said.