The insurgents had now been driven from virtually all the territory they had held, it said.
Some militants were now fleeing towards border areas, the military said.
News of Gwoza's recapture comes a day before presidential elections, which were postponed by six weeks because of the offensive against Boko Haram.
Meanwhile, the president of Chad, which is helping Nigeria fight Boko Haram, has strongly criticised Nigeria's military.
Thousands of people have been killed since 2009, when the group began its insurgency to create an Islamic state.
An estimated three million people have fled their homes because of the unrest, and many may be unable to vote.
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