Lieutenant-General Eduardo Ano, the armed forces chief of staff, said nearly 50 gunmen entered Marawi City, which has a population of about 200,000, and burned houses and other buildings to sow confusion during the fighting, AP reported.
One group of fighters took up positions near a hospital, where they raised a black Isis-style flag, while others battled troops and police near a provincial jail, AP said.
"The whole of Marawi City is blacked out," Lorenzana said. "There is no light, and there are Maute snipers all around," so the Philippine troops are holding their positions. He said reinforcements would arrive today.
Among the buildings torched by the militants were a church, the city jail, a school, a college and a number of homes, Lorenzana said.
Duterte decided to cut short his visit to Moscow, where he had been scheduled to meet Russian President Vladimir Putin and Prime Minister Dmitry Medvedev.
"The President feels he is needed in Manila ASAP," Foreign Secretary Alan Peter Cayetano said.
Presidential spokesman Ernesto Abella said in Moscow that martial law would be in effect on the entire island of Mindanao for 60 days.