The Philippines president said the martial law will remain in place until all the extremists are wiped out from the restive southern region.
Photos show fighting is still going on in Marawi long after Philippine President Rodrigo Duterte declared it had been liberated from Islamist militants.
The Philippines president's announcement comes a day after two key Islamist leaders were killed by security forces.
Rodrigo Duterte lashed out at European diplomats and the press who have been critical of his drug war and human rights record.
The Philippines president Duterte also said he is declaring a "revolutionary government" and would be happy to cut all ties with the EU.
The firebrand Philippines president asks the European ambassadors not to return to his country again.
The Philippines defence department used the Taiwan defence ministry logo instead of China's on a banner displayed at an official ceremony.
The president says he is willing to let outside monitors to keep a watch on the human rights situation.
The US troops are assisting the Philippines military as they make a final push to end the long-standing conflict.
The country's defence chief warned that Duterte would not hesitate to impose martial law but insists it is a 'remote possibility'.
Philippine troops fighting Isis-linked Islamist insurgents in the city of Marawi say they have encountered armed resistance from women and children.
The Philippines president earlier asked the armed forces to wait it out before attacking mosques held by Islamists.
Duterte had initially placed the bounty on policemen who had a hand in the notorious drug transactions in early August.
Police are under pressure to explain the circumstances surrounding the death of high-school student Kian Loyd Delos Santos.
The 60 deaths mark the deadliest period of the crackdown that has killed thousands since Duterte took office over a year ago.
The Philippines president said he is determined to wipe out drug pushers in the country by all means.
The president said he prefers to maintain friendly relations with Beijing despite the South China Sea dispute.
Jose Maria Sison said Duterte is "addicted to power and fentanyl" despite slaughtering suspected dealers.
Reynaldo Parojinog killed in clashes between police and mayor's gunmen.
Oxford University said Duterte used social media manipulation as part of electoral run.
Thousands of suspects have died during the anti-drug campaign he launched after being sworn into office in June 2016, sparking widespread criticism.
Philippines President Rodrigo Duterte says he is prepared to wait for a year for the end of the siege which has killed more than 500 people.
