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ISIS have celebrated Eid by hanging dozens of prisoners upside down from meat hooks and slaughtering them "like sheep" in a horrific new execution video featuring clips of Tom Cruise from Mission: Impossible.

The 12-minute video, 'The Making of Illusion', which also features a clip of former British prime minister David Cameron , has been described at the 'worst video' from the terrorist group.

The video was released yesterday as Muslims around the world celebrated Eid al-Adha, one of the most important holy festivals for the faith.

Muslims traditionally slaughter sheep, cattle and other livestock during the three-day festival.

The spy theme of the Hollywood-style production begins with scenes of a director's chair followed by behind-the-scenes footage from Mission: Impossible - Rogue Nation featuring Cruise and British actor Simon Pegg cut alongside clips of previous gruesome ISIS executions.

Footage of the Eiffel Tower and images from the Bastille Day terror attack in France are also included in the montage.

The video ends with the execution of prisoners accused of being US spies in a slaughter house in Deir ez-Zor, north-eastern Syria.

In the grisly execution scene, prisoners wearing bright orange outfits are seen huddled in a slaughter house before some are selected to have their throats cut and then hung up on meat hooks alongside other prisoners awaiting execution.

In another scene, an executioner wearing all white carries two prisoners through the building to be executed.

ISIS uses the video to mock foreign intelligence services, The Daily Mail reported.

Abu Mohammed, founder of the human rights group 'Raqqa is Being Slaughtered Silently', described the film as 'the worst video we saw' and that humans were butchered 'like sheep', the website reported.

The new video is not the first time ISIS has used famous actors or films in its execution videos.

In January this year, the group released a chilling video featuring a classic film staring legendary British actor Oliver Reed to threaten attacks against Italy.

The video showed clips from the 1981 film Lion of the Desert, which also stars American actor Anthony Quinn.

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The terror group's use of the film is used to threaten Italy, warning that its terror campaign will continue until its banner "flutters over Rome".

The film is about a Libyan hero Omar Mukhtar - played by Quinn - who helped his nation fend off an Italian invasion in 1929.

Under his leadership, Libyan forced fight off the Italian troops led by General Rodolfo Graziana, who is played by Oliver Reed.

The Italian troops are fighting to try and take Libyan soil under direct orders from Italian dictator Mussolini, played by Rod Steiger.

However, the Libyan fighters manage to hold off the more heavily armed Italians for 20 years.

The clip used by ISIS shows the Libyan forces attacking the Italians.

Reed's character can be seen watching his forces being attacked.

Commentary on the video confirmed ISIS was using the clip to threaten Italy.