Masked ISIS terrorists have beheaded two men they accused of being sorcerers in front of a baying crowd in Libya.

In its latest barbaric video, the accused - both blindfolded, bound and wearing orange jumpsuits - are led in the centre of a crowd to be executed.

The footage was reportedly shot in Libya, where there is estimated to be some 2,000 jihadis and they have begun to impose sharia law and horrific punishments.

Horrific: A masked ISIS fighter lifts his sword above the head of a blindfolded man accused of being a sorcerer

Barbaric: The men are killed in front of a large crowd, some standing on vehicles to get a better look, in Libya

The video shows men being flogged in public before the two men accused of practicing magic, one of whom is elderly, are dragged in front of the crowd.

Men and children, some standing on vehicles to get a better view, watch as the accused are knelt on the ground and beheaded.

As the 'sorcerers' die, the crowd shouts Allahu Akbar (God is great). The video ends with the headless bodies being loaded into an ambulance.

Western officials say both the UK and US have secretly sent in commandos to undertake surveillance and gather intelligence in central Libya amid fears that ISIS may even move its main base there.

The officials told the New York Times last month that, as ISIS loses ground in Syria and Iraq, the terror group increasingly sees war-torn Libya as crucial to continuing its jihad if forced out of its heartland.

Onlookers, some standing on vehicles to get a better view, watch as the men are knelt on the ground and beheaded

Close-up: The executioners are dressed in black and their faces are covered by masks

Concern has focused on the port city of Sirte, the hometown of Muammar Gaddafi, which is just 400 miles southeast of Sicily.

ISIS has already won complete control of a 150-mile stretch of coastline near the city, forcing back local militias that had vowed to force out the largely foreign jihadi fighters.

The group has started to impose a harsh interpretation of Islamic law on the people of Sirte, banning music, forcing women to wear veils and crucifying people.

Their next target is believed to be Adjabiya, a city to the east of Sirte, which would give ISIS control of a key crossroads as well as important oil fields and terminals to the south.

The country remains split between two rival governments which have been urged by the international community to accept a proposed peace deal.

The resulting chaos has been exploited by ISIS, which has seen its early success in Syria and Libya reversed by opposing forces backed by Western air power.