PHILIPPINE president Rodrigo Duterte has ordered his troops to crush militants who are fighting street battles with government forces in the south, warning that the country is at grave risk of “contamination” by Daesh.

The city of Marawi, home to some 200,000 people, has been under siege by Daesh-linked militants since a government raid on Tuesday night on a suspected hideout of Isnilon Hapilon, who is on Washington’s list of most-wanted terrorists.

After the raid failed, gunmen swept through the streets, fending off government forces and taking over large parts of the city. Duterte imposed martial law on the southern third of the nation earlier this week as the fighting continued.

At least 44 people have died, including 31 militants and 11 soldiers. It is not immediately clear whether civilians are among the dead.

The violence has forced thousands of people to flee and raised fears of growing extremism.

Duterte told soldiers in Iligan, a city near Marawi, that he had long feared that “contamination by IS” loomed in the country’s future. “You can say that IS is here already,” he said.

He gave his troops a free hand to wrest control of Marawi, saying: “You can arrest any person, search any house without warrant.”

The president has previously allowed extra-judicial killings of thousands of people in his crackdown on illegal drugs.

However, he has also offered dialogue to militants who are not on the streets fighting. “We can still talk about it,” Duterte said. “But those who are out-and-out terrorists, and you cannot be convinced to stop fighting — so be it. Let us fight.”

Hapilon is still hiding out in the city under the protection of gunmen who are trying to find a way to extricate him, the country’s military chief said.

“Right now, he is still inside the city,” General Eduardo Ano said.

“We cannot just pinpoint the particular spot.”

He said Hapilon suffered a stroke after a government air strike wounded him in January