The body of Australian army reservist Ashley Johnston, who was killed on the frontline in Syria fighting with Kurdish forces against Islamic State militants, has been handed over to family representatives in Turkey, Kurdish officials said.

Thousands of Kurdish mourners followed the funeral procession through the streets of Kurdish-controlled Syrian city of Darbasiye, where the coffins of two foreign fighters - Johnston and a German woman Azad Derik - were taken to the border gate with neighbouring Turkey.

Chanting "long live the brotherhood between the Kurdish and the Australian people," and "long live for the resistance YPG in the face of global terrorism", the procession waited in the pouring rain for hours before representatives of the Peoples Protection Units, or YPG, were able to hand the bodies across the border into Turkey, a mourner told Fairfax Media.

The 28-year-old had travelled to Europe in October, but by December he had sent a text message to his mother, Amanda Johnston, saying he was doing humanitarian work with the Kurds, who are locked in a bloody struggle against IS in both Syria and Iraq.

The YPG says he was killed in the two-week long battle to liberate the strategic Syrian town of Tel Hamis from the Sunni militants who had taken control of the area a year before.

On February 26, the day his death was announced, YPG spokesman Redur Khalil told Fairfax Media Mr Johnston had only joined the Kurdish forces three months ago.

"We don't always allow foreigners on the frontline but he was a champion, he was very active and he fought until the moment he died," he said. "He came from thousands of kilometres away to be with us and until the last moment of his life he fought for the Kurds."

Kurdish forces took control of the town of Tel Hamis two days later, cutting off a key supply route from Syria into Iraq for IS.

Under the Foreign Incursions Act, Mr Johnston would have faced 20 years' jail if he had returned to Australia, even though the YPG has received shipments of weapons carried to the region on board RAAF transport planes.

Australian Kurdish Association president Gulfer Olan said the body of Mr Johnston was expected back in Australia late next week, on the Sunday.

Mr Johnston's mother Amanda was talking to Kurdish community officials about funeral arrangements.

It is understood the family wishes to hold a funeral in Canberra, Mr Johnston's home city, but the large Kurdish community in Sydney also want to hold a funeral.

Last week 500 Australian Kurds attended a memorial service for Mr Johnston in Sydney and the community has begun a fundraising effort for the Johnston family.