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At least 36 bodies were found dead at the casino resort where the attack took place, reported local Philippine channels, quoting sources at the Bureau of Fire Protection.
The victims died of suffocation from smoke after a gunman stormed into a casino-hotel complex and set fire to gambling tables before fleeing with a bag of casino chips.
The police chief says none of the dead bodies had gunshot wounds.
According to the police, the gunman died after setting himself ablaze, reported Reuters.
Smoke billowed from the upper storey of an entertainment resort in the Philippine capital Manila where police were searching for a gunman who fired shots and set gaming tables alight early on Friday, a Reuters witness said.
The Manila Police Chief said that the gunman in the hotel attack was not aiming at the people present. The situation is under control now.
Employees were evacuated from the hotel soon after the gunshots and explosions happened.
"I was about to return to the second floor from my break when I saw people running. Some hotel guests said someone yelled 'ISIS'," Maricel Navaro, an employee of Resorts World, told DZMM radio.
Philippines armed police seen entering the Manila hotel.
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There were no immediate reports of fatalities or injuries.
ISIS has claimed responsibility of the attack on the Resorts World Hotel in Manila. Military spokesman Restituto Padilla said the police were in control of the situation and the army was monitoring closely.
Witnesses who spoke to radio stations said several gunmen were seen in the complex. News channel ANC said there were two gunmen, wearing masks and black clothes.
A fire was burning on the second floor of the Resorts World building, Fire Protection bureau spokesman Ian Manalo said.
The Resorts World Hotel announced on its Facebook page that it’s currently on lockdown following the attack by unidentified men.
Explosions and gunshots were heard at an entertainment resort in the Philippines capital Manila early on Friday and armed police were deployed to the scene, local media reported.
Police and fire services could not immediately be reached for comment.
Pictures circulated on social media of the resort, close to the city's airport, of plumes of smoke pouring out of a building.
A source at one of the resorts told Reuters employees were being evacuated and declined to give more details. He said police were now in full control of the situation.
Gunfire and explosions have been heard outside the Resorts World hotel in Manila, CNN Philippines reported on its Twitter feed.
It said police, fire trucks and a SWAT team were in the area.
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