Islamic State has struck back as Iraqi forces close in on victory in Mosul, sending women suicide bombers to target soldiers as the battle for the country's second-largest city nears its end.

Iraqi troops are clearing up a key neighbourhood in Mosul after making significant gains against Islamic State militants in the city and the prime minister declared an end to the extremist group's self-proclaimed caliphate.

At least 32 people have died in a suicide car bomb attack near a funeral procession in Baghdad.