Egyptian police found two decapitated bodies in North Sinai's Sheikh Zwayed, a security source told AFP on Saturday.

The bodies were found in El-Shalaq village, near Sheikh Zwayed city, and were recognised as two young men aged 30 and 33 who had gone missing several days earlier.

Egypt's most active militant group Ansar Beit El-Maqdis, which swore allegiance to the Islamic State last November, had already claimed responsibility for killing of at least 12 people by decapitation, accusing them of collaborating with the Egyptian army or Israeli intelligence.

In December, the militant group released a video on social media showing the decapitation of two men for collaborating with the Egyptian army. In the video, the group promised that such killings "will be repeated".

Security forces have been battling an Islamist militant insurgency in Sinai for over a decade. However, since the ouster of Islamist president Mohamed Morsi, militant attacks have escalated, mainly targeting security forces in several governorates, including Cairo.  

Ansar Beit Al-Maqdis has claimed responsibility for most of the attacks in Sinai since Morsi's overthrow.