The Islamic State militants have pulled out of the Palestinian refugee camp, leaving the al-Nusra Front in charge, claimed reports from Yarmouk on Wednesday.
Isis fighters have left Yarmouk camp and moved to the neighbouring district of Hajar al-Aswad, from where the Sunni militants had launched the attack against the Palestinians.
"Most of them have withdrawn in mostly to-and-fro skirmishes that took place between them and their adversaries," resident Abu Ahmad Hawari told Reuters.
With Isis moving out of the Palestinian refugee camp located on the outskirts of Damascus, the al-Qaeda-linked al-Nusra Front are now the main group inside the camp.
An AFP report noted that the "Isis fighters have retreated from much of the territory they seized in the camp."
Since Isis' entry into the Palestinian camp, the Syrian regime forces have maintained a siege around the town. There have also been reports that a few Palestinian militia groups have also established joint operations with Syrian forces to flush out Isis.
However, there is still no clarity as to why the Isis militants decided to move out of Yarmouk.
The Palestine Liberation Organisation's envoy to Damascus claimed that Isis moving out of Yarmouk was no relief. "They and Nusra are one. They are changing positions," Anwar Abdul Hadi told Reuters.
Isis entered the Palestinian refugee camp on 1 April as part of its plan to gain easy access towards Damascus, however, the militants were met by stern resistance from Palestinian militia.
Yarmouk camp was home to some 1,60,000 Palestinian once, but the number has gradually shrunk to 18,000 mostly due to siege and starvation.
Meanwhile, about 2,500 civilians have managed to escape the camp, after Isis entered the city.