Malacañang on Saturday said the pullout of government forces from Marawi City do not signal the end of fighting as threats coming from some Islamic State-linked terrorists are still present.

In a statement, Palace spokesperson Ernesto Abella said the government would not compromise public safety, adding some Islamist fighters are still on the loose.

"The start of the military pullout in Marawi does not signal the end of fighting between our troops and Maute terrorist-stragglers,” Abella said.

He assured the public that the government would continue to be on guard against any remaining terrorist in the area.

"While enemy force has greatly diminished, we will continue to be alert and assure the residents of the city that we will not compromise its security with the presence of some units of the Armed Forces,” Abella said.

"We cannot afford to drop our guard for possible threats coming from the remaining network of the Daesh-inspired terrorist group still operating as we begin the challenging task of rebuilding, reconstruction and rehabilitation of Marawi,” he added.

The military has commenced a gradual pullout of troops from the battle zone following the successful mission to defeat terror leaders Isnilon Hapilon and Omar Maute.

President Rodrigo Duterte had on Tuesday declared the city "liberated from terrorist influence,” sparking hopes that hundreds of thousands of residents could begin returning home

On Thursday, he confirmed the killing of Malaysian terrorist Mahmud Ahmad, known to be Hapilon’s right-hand man.

Still, the military is looking for several individuals, including Hapilon’s three sons, known to still be in the battle area, and two remaining foreign terrorists.

Authorities earlier said foreign terror leaders took over after Hapilon and Maute were killed.

At least 1,108 people, mostly terrorists, have died since clashes erupted in the city on May 23.

Some 400,000 residents in Marawi City and nearby towns were also forced to evacuate, as the crisis left much of the city in ruins.

Government has begun laying down plans to rebuild Marawi, once a bustling urban and cultural capital and the country’s only Islamic city.