Islamic State fighter Khaled Sharrouf and sons killed in Syria

Khaled Sharrouf | Twitter

The ABC and The Australian reported government officials as confirming Sharrouf - who fled Australia in 2013 to join extremist forces - and his sons Abdullah, 12, and Zarqawi, 11, were killed in a coalition air strike while driving near Raqqa on August 11.

"All of the children that are being exploited in this way, if they are Australian citizens, of course, would be able to return to Australia".

Sharrouf travelled to Syria in 2013 and was later followed by his wife and their five children.

Sharrouf's children (clockwise from top left) Zaynab, Hoda, Abdullah, Humzeh, Zarqawi.

Relatives had a year ago cast doubt on claims of his death.

Sharrouf's three remaining children are now stuck in Raqqa, where local civilians live an increasingly unsafe existence, trapped between a US-backed offensive and the Islamic State, who are preventing anyone from leaving the besieged city.

Sharrouf first came to public attention when he was charged over the Operation Pendennis terrorist conspiracy in 2005.

USA stocks fall again on North Korea tensions
Shanghai's main index also tumbled 1.6 percent to 3,208.54 while Australia's S&P/ASX 200 dropped 1.2 percent to 5,693.10. Analysts warned the softening dollar could test June's low of 108.82 yen and even the 2017 trough of 108.13 yen.

There were reports in June 2015 that Sharrouf was killed in a coalition air strike, which later proved false.

He was caught during a major counter-terrorism investigation that broke up jihadist cells in Melbourne and Sydney. "Australian law get stuffed, finished ... give us all back our passports and we leave", he said.

He was a peripheral player and only served five years in jail.

In the years after his release it became clear he had not abandoned his commitment to militant Islam, and in 2012 was a participant in the Hyde Park riot that began as a protest against a YouTube video denigrating Islam's prophet, Mohammed.

But instead of playing with a fidget spinner or Pokemon cards, Abdullah Sharrouf, then aged nine, was mucking around with a grown man's severed head.

"This image is really one of the most disturbing, stomach-turning, grotesque photographs ever displayed", he said.

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