Provincial governor Abdul Basir Salangi confirmed that the militants were driven out of the city in the early hours of Wednesday morning.
According to Salangi, at least twenty people including several security personnel have lost their lives during the clashes with the Taliban insurgents.
He said the Taliban militants have also suffered casualties during the clashes but did not elaborate further regarding the exact number.
The governor of Farah also added that the Taliban militants from the other provinces including Helmand had also participated in the attack on Farah city.
In the meatime, the 207th Zafar Corps of the Afghan Military confirmed that the Taliban militants are under the siege of the security forces in Farah city.
The interior ministry spokesman Najib Danish also confirmed that the city has been fully cleared of the militants.
The Taliban militants have not commented regarding the report so far.