Provincial Police Chief Faqir Mohammad Jawzjani told Ariana News that a senior leader of the group, Mawlavi Habib Ul Rahman has surrendered to government forces with his 230 fighters late on Tuesday night in Darzab district the province.
He added that Daesh fighters have handed over their weapons as well.
Reports suggest that Mufti Nematullah, the deputy head of Daesh group in the north of Afghanistan, is also among the surrendered militants.
The Taliban in a statement took credit for itself and said that they had killed dozens of Daesh militants, adding that more than 130 have been captured while the rest have surrendered to Kabul government.
The Taliban and Daesh insurgent groups have fought against each other in the province since last month that claimed close to 300 lives on both sides.