Syrian troops on Sunday tightened the noose around a Palestinian refugee camp held by Islamic State militants in southern Damascus where hundreds of civilians face an uncertain future, state media, witnesses and residents said.

Nearly two weeks into a campaign to capture the last area near the capital outside government control that has left many parts of the once teeming Yarmouk camp in ruins, state media announced al Qadm neighborhood next to the camp was retaken.

Opposition sources said the army was now engaged in fierce fighting with militants on the outskirts of Yarmouk camp, where an estimated 1,500 to 2,000 militants are now encircled.