Islamic State fighters have seized control of "almost all" of the ancient city of Palmyra, according to the Syrian Observatory for Human Rights.
Rami Abdel Rahman, the head of Britain-based group, said Syrian troops have withdrawn from all sectors of the city, with the exception of a prison in the east and a military headquarters in the west.
"IS controls almost all of Palmyra," he said.
Earlier the militants seized Palmyra's northern sector after fierce clashes with government troops on the edge of the city.
The offensive comes after hundreds of statues and artefacts were moved to safer locations outside the World Heritage Site.
"People are very afraid of what will happen, because IS has the capability to get to the heart of Palmyra," said Khaled al Homsi, an activist in the city.
Palmyra's UNESCO World Heritage Site ruins, including ancient temples and colonnaded streets, are located in the city's southwest.
Many artefacts have been removed from Palmyra's museum amid fears they will be destroyed by IS fighters.
But Syrian antiquities director Maamoun Abdulkarim said items such as large stone tombs cannot be moved.
"The situation is very bad. If only five members of IS go into the ancient buildings, they'll destroy everything," he said.
The militant group has already destroyed antiquities at the ancient Assyrian city of Nimrud and the Roman-era city of Hatra.
IS began its assault on Palmyra on 13 May by seizing a nearby town and two gas fields, and killing more than 350 people.
The city is located at a strategic crossroad for key highways leading to Damascus and Homs, and east into Iraq.
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