"All Iraqi lands are liberated from terrorist [IS] gangs and our forces completely control the worldwide Iraqi-Syrian border", General Abdul-Amir Rahid Yar Allah confirmed in a statement.
Al Abadi announced in a press conference that the remaining Iraqi region under the IS control, nearby the Iraqi border with Syria, was now under complete control of Iraq's armed forces.
The campaign to eradicate the Islamic State took more than three years and about 25,000 coalition airstrikes.
A senior Iraqi military commander has said his country's war against the Islamic State group is over. "We stand by them as they set the conditions for a secure and prosperous #futureiraq", said the tweet.
But it suffered a series of defeats over the past two years, losing Iraq's second city of Mosul this July and its de facto capital of Raqqa in northern Syria last month.
The forces fighting Islamic State in Iraq and Syria now expect a new phase of guerrilla warfare, a tactic the militants have already shown themselves capable of.
ISIS' ascendency and the world's military response has created a devastating crisis for civilians and led to the displacement of more than 3.2 million people, according to the United Nations.
Islamic State leader Abu Bakr al-Baghdadi, who in 2014 declared in Mosul the founding of a new Islamic caliphate in Iraq and Syria, released an audio recording on September 28 that indicated he was alive, after several reports he had been killed. The group controlled more than 34,000 square miles of territory from the Mediterranean coast to south of Baghdad.
Iraq now faces the daunting challenge of reconstruction.
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