The defeat was the biggest yet for ISIL three years since it seized Mosul in a lightning offensive, swept across much of the country's Sunni Arab heartland and proclaimed a "caliphate" straddling Iraq and Syria.
Iraqi forces, backed by US-led air strikes, have tried to retake the city since 17 October previous year.
Thirty IS militants were killed as they attempted to escape the advance of the Iraqi forces by throwing themselves in the River Tigris, state media said.
In a Twitter message, French President Emmanuel Macron hailed Iraqi troops and their allies for retaking Mosul from IS.
The United Nations has predicted it will cost more than $1 billion to fix basic infrastructure in Mosul.
The Iraqi Prime Minister has declared that the city of Mosul has been "liberated" from ISIS militants.
The iraqi forces had captured in January the east of the city and then attacked the west in February.
AFP meanwhile reported that the decaying bodies of Daesh fighters were piling up among the ruins of Mosul.
The recapture of Mosul, hailed as a decisive step towards ending this unprecedented episode in the history of modern jihad, is the latest in a long string of setbacks for IS.
Iraqi Prime Minister Haider al-Abadi arrived in the city on Sunday to congratulate the armed forces for their "victory" over Islamic State after eight months of urban warfare. But in the last ten months, ISIS was forced to retreat under pressure from Iraqi government troops.
USA -backed Syrian forces have encircled and pushed into the Islamic State's de facto capital of Raqqa in neighboring Syria after a month of fighting, although a long battle lies ahead.
These last few days, a few jihadists are still present in Mosul were besieged in a redoubt of the old city of Mosul, along the Tigris river.
Iraq's Prime Minister has arrived in Mosul to celebrate military forces capturing the city from so-called Islamic State. The U.S. -led operation to retake Mosul began and October and has already displaced some 87,000 people.
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