"We believe he is now in Biaj, west of Mosul, hiding in an underground bunker. He changes his location all the time, and he also changes his appearance," the commander of Iraq's elite Counter-Terrorism Service told Niqash portal.
Earlier in the day, the US State Department increased the reward for information on al-Baghdadi to $25 million from $10 million.
In November, the Iraqi armed forces press service said that al-Baghdadi fled Mosul amid the Iraqi troops' military operation to retake the northern Iraqi city.
Daesh, which has controlled Mosul since 2014, is outlawed in many countries including Russia and the United States. On October 17, Iraqi Prime Minister Haider Abadi announced the start of a military operation to recapture Mosul from Daesh with the help of airstrikes by the US-led international coalition.