President Rodrigo Duterte said a new military camp will be established in war-torn Marawi City.

In a media interview at the Davao airport following his arrival from Japan Tuesday night, Duterte said the residents who were displaced due to five-month operations against the Islamic State-inspired Maute terrorists would be allowed to return in Marawi even if the place was a military reservation.

"And Marawi proper, we have to concede it to the Moros there. The Moro will have to, you know, clean up the place and they can have it," he said.

"Well, it is a huge tract of land. The military is ready. Just give them a little bit of space where they can conduct everything they should know about soldiering," he said.

"But just about in front of Marawi, I will create a new camp. Maybe one regiment or one division there within the vicinity of the greater Marawi area," Duterte added.

Campo Ranaw, the Philippine Army's 103rd Infantry Brigade camp, is located in Marawi.

The government would undertake the rebuilding of Marawi after it was devastated by heavy fighting between the military and the terrorists.

Authorities declared Marawi free of terrorists following the death of their leaders Isnilon Hapilon and Omar Maute on October 16.

The terrorists started occupying and attacking the city on May 23, prompting Duterte to declare martial law in the whole of Mindanao. Celerina Monte/DMS