Heavy clashes erupted on Monday between the army and the foreign-backed militants over the control of the Quneitra crossing operated by the United Nations peacekeepers.
Persistent small arms fire and explosions could be heard on the Israeli-occupied side of the Golan Height. Reports say at least one army tank was involved in the operation.
A contingent of 44 UN peacekeepers was abducted by the militants after the insurgents occupied the crossing on Thursday.
Fijian Army Commander Brigadier General Mosese Tikoitoga said on Sunday that talks are underway to release the soldiers serving with the UN Disengagement Observer Force (UNDOF).
UN Secretary General Ban Ki-moon has strongly censured the attack on UNDOF positions and the detention of its peacekeeping forces.
Earlier, the Syrian army advanced on the Jobar neighborhood of the capital Damascus, killing a large number of militants.
Government forces have made major gains in their battle against Takfiri groups across the country in recent months.
According to estimates by the United Nations, over 190,000 people have been killed and millions displaced due to the turmoil fueled by the Western-backed militants in Syria since March 2011.
Since November 2012, CIA operatives and US Special Operations forces have been secretly providing the militants with training on the use of anti-tank and anti-aircraft weapons in a secret base in Jordan, according to several reports.
Analysts believe the crisis in Syria will backfire on the West as militants are now returning to the countries they came from, including those in Europe.