U.S.-Iraqi forces have rescued dozens of hostages held by Islamic State (IS) in Iraq after learning of their "imminent execution", the Pentagon has said, according to BBC News.

But a U.S. soldier wounded in the raid died of his injuries - the first killed in action since US operations against IS began last year.

The early morning operation on Thursday, October 22 took place near the town of Hawija in northern Iraq.

Five IS militants were captured and a number killed, the Pentagon said.

About 70 hostages were rescued, defence officials said, including Sunni Arabs, 20 Iraqi security force members and IS members being held as suspected spies. No Kurds were rescued, the Pentagon and Kurdish officials said, despite initial reports to the contrary.

A Kurdish intelligence source however told the BBC only 17 were rescued, all former IS militants. He said the operation's aim was to capture prisoners who had defied orders of their IS leaders.