The Yemeni army retook the Azzan area from Al-Qaida militants after weeks of battles and a massive hunt for the remaining militants who escaped from the nearby province of Abyan.
The Defense Ministry said the whole area of Azzan, which was seized by the militants last year along with key towns in Abyan, is under the control of the government.
"With support from the army, the pro-government fighters and committees fought Al-Qaida and drove it out of Azzan," the ministry said.
Over the past few months, the Yemeni army launched a US-backed offensive and cleared Al-Qaida militants from Abyan. The towns, which were seized and declared as Islamic emirates including the capital Zinjibar, were regained and many militants including senior leaders were killed.
The victory has been widely hailed internally and externally since it demonstrated the determination of the new government toward the war on terrorism.
In the meantime, Al-Qaida has claimed responsibility for the assassination of senior army and security leaders and vowed to retaliate for the severe defeat in the south.