A man purported to be the reclusive leader of the militant Islamic State Abu Bakr al-Baghdadi in his first public appearance at a mosque in the centre of Iraq's second city, Mosul, according to a video recording. Reuters

Abu Bakr al-Baghdadi, the leader of Isis (self-proclaimed Islamic State), is believed to have gifted a sheep and $100 to each jihadist fighter in his organisation to mark the Muslim festival of Eid al-Adha.

The 42-year-old caliph is one of the most-wanted terrorists in the world and the US has launched a massive manhunt for him.

According to reports, al-Baghdadi, who is married, was a renowned preacher and a graduate from the Islamic University in Baghdad.

He is often called "the ghost" because of his ability to appear and then vanish without leaving a trace.

An Islamist website, cited by Iraqi News, said: "Today, the Caliph al-Baghdadi ordered the distribution of a sheep and a hundred dollars for each fighter in all areas controlled by the organization ISIS in Iraq and Syria on the occasion of the feast."

The Isis militants captured thousands of cattle when they overran and seized vast swathes of land spanning Iraq and Syria.

The Sunni insurgent group also controls many key oil fields in the strife-torn regions allowing them to stock resources for the ongoing fighting.

Muslims across the world celebrate Eid al-Adha, literally known as the feast of sacrifice, by slaughtering sheep, cattle and other livestock.