The Abrams tanks were sent to Ukraine amid major fanfare after torturous negotiations between allies.
Kyiv had hoped the introduction of Nato-standard machines would enable its forces to breach Russian defences, but they have ultimately failed to deliver the desired result.
The American-trained and equipped 47th Brigade – which was formed to spearhead Kyiv’s southern counter-offensive – is the only formation known to operate the Abrams.
It first took the $10 million (£8 million) tank to the front lines earlier this year. Abrams have since seen action in the brigade’s last-ditch attempt to stabilise the battle of Avdiivka, the Donetsk region town that fell to Russia in February.
A 47th Brigade source told the Telegraph that its tanks were still operating in the area, despite the US claims.
“Look… Abrams are working, Abrams are providing fire support to our infantry when the situation is difficult in the Avdiivka sector, as it is now,” they said.
“No one is withdrawing the equipment. This equipment is needed now, it has to cover our infantry and it is very important. No one has withdrawn it anywhere.”
Last week, the brigade was involved in a blunder that saw Russia advance at least five miles and capture a village north-west of Avdiivka.
Its battle-hardened troops were given orders to rotate after nearly a year of fighting, but the 115th Brigade sent to replace it didn’t show up, leaving open ground for Moscow’s men to advance.
If the tanks have been removed, experts say it will give their Ukrainian crews time to refit them ahead of future battles, where their full potential may be unlocked.
Tanks have been spotted in Ukraine with rudimentary guard rails and nets around them to block suicide drones from striking the main part of the vehicle.
Russia has recently built corrugated ‘shells’ around some vehicles, which have been subsequently nicknamed “turtle tanks”.