On Sunday, Libyan troops recaptured a residential neighborhood which was used as a hideout by the extremists.
Since Thursday, Libyan forces have been pushing further into Sirte amid an intensified aerial bombardment and a barrage of tank fire against Daesh sniper positions.
The troops, who started a large-scale military operation in May to purge Daesh from Sirte, have so far recaptured several areas in the city.
Figures show about 450 pro-government fighters have been killed and 2,500 wounded since the Sirte operation began.
Sirte, located on the Mediterranean coast, is the main urban center Daesh has managed to seize outside Iraq and Syria.
Recapturing the key city would deal a huge blow to the militant group in its drive to expand the militancy outside the Middle East.
Daesh had taken advantage of a chaos gripping Libya since 2011, when a NATO military intervention followed the uprising that led to the toppling and killing of former dictator, Muammar Gaddafi.
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