Samsudin Dimaukom, the mayor of the southern town of Saudi Ampatuan, was one of more than 150 local government officials, judges and police identified by Duterte earlier this year as being involved in the illegal drug trade.
The deadly crime war has claimed more than 3,800 lives and drawn criticism from the United States, the United Nations and international rights groups who have accused police of summarily executing suspects.
Officers returned fire, killing the men in the town of Makilala, about 950 kilometres south of the capital Manila.
"Suspects (were) heavily armed and fired upon the law enforcers, which prompted them to fire back," Galgo said.
Dimaukom made a name for himself by funding the construction of a pink mosque in Saudi Ampatuan in a plea for peace in the town which has been wracked by violence.
Muslim rebels have been waging a separatist insurgency in the southern Philippines for decades.
After returning from a trip to Japan late Thursday, he threatened to step up police killings of drug suspects.
"If my wish to get rid (of illegal drugs) in my country is not granted, you can expect about 20,000 or 30,000 more. There is a war going on," he said.
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