About 800 Iraqi forces backed by US warplanes are waging a battle to retake the western town of Al-Baghdadi from ISIL terrorists, a US military commander said Monday.

About 800 Iraqi forces backed by US warplanes are waging a battle to retake the western town of Al-Baghdadi from ISIL terrorists, a US military commander said Monday.

Kurdish militia, meanwhile, rebuffed an attempt by the ISIL group on Sunday night to recapture an Iraqi town standing on a crucial supply route to the northern city of Mosul, the commander said.

Lieutenant General James Terry told reporters the 'jihadists' had been "halted" across Iraq and that it was now only able to launch smaller-scale attacks.

"At the same time, what we're not seeing on the part of ISIL is as important also. We're not seeing those broad counter-offensives" that they staged previously, he said.

Iraqi army and commando units, as well as tribal fighters, were currently carrying out an operation to retake the small town of Al-Baghdadi which ISIL 'jihadists' had seized about a week ago, according to Terry.

The counter-attack, dubbed "Lion's Revenge," involved "well over 800" Iraqi forces, including mechanized units.

The town is located near the Iraqi army's Al-Asad base.