Egypt's semi-official religious watchdog Dar Al-Ifta Al-Missriyyah said on Monday that the Daesh terrorist group is being defeated in Egypt's Sinai Peninsula, with militants fleeing to Libya, due to the huge material and human losses sustained in battles with Egyptian security forces.

The Takfiri Fatwas and Extremist Views Observatory, a research group within Dar Al-Ifta, based its assessment on the latest messages of Daesh leader Abu-Bakr El-Baghdadi to his fighters in Libya, the watchdog said in a report on Monday.

The Observatory, which specializes in tracking militant statements on social media, said that El-Baghdadi's messages reveal the demoralization of the terror group's members after recent harsh security strikes against Daesh in Sinai.

They also indicate a wave of Daesh militants fleeing to Libya to escape the Egyptian army and police crackdown in Sinai, a phenomenon that the group's leader is attempting to halt.

"El-Baghdadi's messages revealed orders to kill Daesh members escaping from Sinai to stop this wave of fleeing," according to the Observatory.

"The messages from the Daesh leader constitute a main strategy of centralization in Egypt, while maintaining a strategic presence in the Sinai Peninsula, as well as scattering in other Egyptian governorates to evade security strikes and to maintain the flow of logistical and technical assistance in the battle against Egyptian security forces, considering Sinai as the focus point and springboard of the terror group in Egypt," the report said.

The Observatory also said El-Baghdadi's messages reveal that the group has been hit by a "fatal disaray" after recent failures in Sinai, indicating that Ansar Beit Al-Maqdis, the Daesh terror offshoot in North Sinai, is deteriorating due to intense security strikes.