SAS and other elite snipers are wearing the suits which keep them hidden from sophisticated surveillance systems used by Islamic State extremists in Syria.
Branded the "combat burqa", it is believed the outfits were funded with a 1.1 billion pounds war chest unveiled last year by Prime Minister David Cameron in the campaign against terror, the Sunday Mirror reported.
SAS teams are also wearing the black fatigues of Islamic State and using Toyota pick-up trucks to avoid suspicion from locals, the report said.
To combat the risk of so-called "friendly fire", they attach the Union Jack to their vehicles when they return to coalition strongholds.
The specialist suits are also being used by units deployed on reconnaissance missions, a source was quoted as saying.
"It is difficult to wear, but when you're within range of radar it is a life-saver. It reflects infrared as well as disrupting the human signature so the enemy cannot see us on their radar. We know they captured some very advanced equipment from the Iraqis which the US donated to them," the source said.
"The clothing certainly has the capability to allow us to operate as 'ghosts', which has a major psychological impact on the enemy, who know we're there but cannot see us," he said.
The suits contain technology which disrupts electronic pulses used by surveillance systems to scan open desert and identify a "human signature".
"It will both save lives and help capture some of the kingpins in Islamic State. Soldiers are actively searching for those behind a string of horrific beheading videos and they won't stop until the job is done," an insider was quoted as saying.
The SAS, special reconnaissance soldiers and other units are currently conducting hi-tech operations inside Syria and Iraq, which they hope will lead to the capture of extremists, including Jihadi John whose real name is Mohammed Emwazi.
Prime Minister Cameron last week ordered Britian's intelligence network and special forces to redouble their efforts to kill or capture the London-born Islamic State terrorist referred to as 'Jihadi John', days after he warned to return to the UK to continue "cutting off heads".
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