Turkish President Recep Tayyip Erdogan warned European nations on Tuesday that his country could release all the militant Islamic State group prisoners it holds and send them to Europe, in response to EU sanctions over Cyprus.

Speaking to reporters before a visit to the United States, Erdogan also said Turkey would continue repatriating foreign Islamic State militants to their home countries, even if those countries decline to take them back.

Erdogan's comments were in response to the EU's unveiling on Monday of a system for imposing sanctions on Turkey over its unauthorised gas drilling in Mediterranean waters off Cyprus.

Erdogan warned EU countries: "You should revise your stance toward Turkey, which holds so many IS members in prison and controls them in Syria."