Some residents told Sunatimes that fighters left the town after Somali army and Ethiopian troops approached.
“Rebel leaders warned the residents not to welcome the government forces and their Ethiopian allies.” one resident said.
Dinsor was under Al-shabaab authority for the past four years.
This development comes as the Somali Defense Minister, Abdikarim Haji Mohamud Fiqi, was on Saturday touring Garbaharey town, headquarter of Gedo region.
Mr Fiqi met with army chiefs and discussed with them about stepping up the military operation in Gedo, Bay and Bakol regions.
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Al-shabaab militants withdraw from Dinsor town
Al-shabaab militants have overnight retreated from Dinsor town, their stronghold in Bay region of southern Somalia, according to local residents.