Islamic State has released a new video purporting to show British hostage John Cantlie in the embattled Syrian border town of Kobani.
Narrating the video in the style of a news report, Mr Cantlie counters media claims that IS fighters are being driven out of the town.
He says IS has in fact gained control of large areas of Kobani, despite continual US-led airstrikes.
He adds that IS militants are "mopping up" against Kurdish fighters defending the town and that the weeks-long battle is "coming to an end".
"Contrary to what the Western media would have you believe, it is not an all-out battle here now. It is nearly over," he says.
"As you can hear, it is very quiet, just the occasional gunfire."
The 43-year-old photojournalist claims to be in an area of Kobani reported to be held by Kurdish forces, but says they are nowhere to be seen.
"Urban warfare is about as nasty and tough as it gets," he says.
"And it is something of a speciality of the mujahideen."
The Foreign Office says it is aware of the tape and is analysing its content.
Sky News cannot independently verify the authenticity of the video or whether the British hostage is in Kobani.
The five-minute, 32-second video, entitled "Inside 'Ayn al-Islam'", opens with what IS claims is an aerial shot of the town.
It then shows Mr Cantlie purportedly walking through the war-torn streets, addressing the camera.
He refers to several Western media reports published within the last two weeks.
IS has now released seven videos featuring the British hostage since August.
In the latest footage, Mr Cantlie is dressed entirely in black. In previous videos, Mr Cantlie speaks from behind a desk wearing an orange jumpsuit.
He appears to be in good health.
Mr Cantlie was captured in northern Syria in late 2012 while working as an independent photojournalist.
Family members have issued numerous impassioned appeals for his release.
His father Paul, 80, died last week, shortly after recording a final video message for his son's captors from his hospital bed.
IS, also known as ISIS and ISIL, controls large swathes of Iraq and Syria.
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Gallery: US-Led Airstrikes on Kobani
Smoke and flames rise over a hill near the Syrian town of Kobani after an airstrike, as seen from the Mursitpinar crossing on the Turkish-Syrian border in Sanliurfa province
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US military forces again focused airstrikes on the area near the Syrian city in their campaign to turn back Islamic State forces and also hit oil facilities held by the militant group
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Three IS fighters pray as others inspect a hill in the outskirts of Kobani
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A Kurdish fighters position in the outskirts of the Syrian town
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Members of media watch Kobani from a hill near the Mursitpinar border crossing
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Syrians wait to cross to the northern Syrian city of Tal Abyad at the Akcakale border gate in Sanliurfa province, southeastern Turkey
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Kurdish refugee children from Kobani in a camp in the southeastern town of Suruc
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A Turkish army tank drives downhill, in front of ruins of Kobani
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A Turkish flag flutters on the top of a silo in the Syrian town
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Turkish Kurds watch Kobani from a hill near the Mursitpinar border crossing
Since August it has published a number of videos showing the beheadings of four Western hostages.
They include British aid workers Alan Henning and David Haines and US journalists Steven Sotloff and James Foley.