Duterte said in the future the Philippine military will not buy its equipment from either Canada or the U.S.
Last summer the Philippine air force used its older combat utility helicopters during intense fighting in the city of Marawi, a predominately Muslim city.
The helicopters, Bell said, were to be used for missions including disaster relief, search and rescue, passenger transport and utility transport.
Canadian media had reported that Prime Minister Justin Trudeau's government was reconsidering the sale over fears the aircraft would be used in internal security operations, just hours after both governments had announced the deal. I hope that we will never called upon to use arms in their defense or for them.
"I want to tell the armed forces to cut the deal, don't proceed with it and somehow we will look for another supplier", Duterte said of the helicopter purchase.
"If you can not use it against the terrorist or Filipino citizen, then prepare for the eventual collapse of this country", the President said. The allegations relate to extrajudicial executions committed during the president's war on drugs, which has killed thousands.
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However, Major-General Restituto Padilla, military chief of plans, in a Reuters report, noted that the helicopters could be of help for search-and-rescue operations for disaster relief operations, but said that "the helicopters will be used for the military's internal security operations".
Canadian Foreign Minister Chrystia Freeland said on Thursday that an "extremely rigorous human rights review" would be undertaken before any export permit was issued over the helicopter contract.
Army spokesperson Lieutenant Colonel Louie Villanueva explained that "the higher quota is also due to the ongoing activation of 10 additional Army infantry battalions which aims to further strengthen the PA's capability, to be more responsive in addressing the various threats, particularly terrorism, that beset the country".
Human-rights and arms-control groups have accused the Philippine armed forces of extrajudicial killings and other atrocities in their fight against Islamic militants and communist rebels.
"There are many massacres now, in all parts of Asia ... and I'm the one you want to hit", Duterte said.
Duterte, who has overseen a crackdown that is said to have left almost 4,000 drug suspects dead, described Trudeau's comments as "a personal and official insult". "You better clear that up because I will withdraw from the ICC".