Battle of Bankusay Channel The Battle of Bankusay on June 3 , 1571 marked the last resistance to the occupation of Manila by the Spaniards , led by Miguel López de Legazpi . Tarik Sulayman , the chief of Macabebe , Pampanga , refusing to ally with the Spanish as Lakandula of Tondo had done , decided to mount an attack at Bankusay Channel . His forces were defeated , and he himself was killed . The Spanish victory at Bankusay and Legaspi ' s friendship with Lakandula , enabled the Spaniards to establish themselves throughout the city and its neighboring towns . Background . Miguel López de Legazpi , searching for a suitable place to establish his capital after being compelled to move from Cebu to Panay by Portuguese pirates and imminent famine under Martin de Goiti and Captain Juan de Salcedo to discover the location and potentials of a sultanate in Luzon . De Goiti anchored at Cavite , and tried to establish his authority peaceably by sending a message of friendship to Maynila . Rajah Sulayman , its ruler , was willing to accept the friendship that the Spaniards were offering , but did not want to submit to its sovereignty . Thus , Sulayman waged war against them . As a result , De Goiti and his army attacked Maynila on June 1570 . After a stout fight , Sulayman and his men were forced to flee uphill . The natives only came back to the city after the Spaniards had left . In 1571 , the Spaniards returned with their entire force ( consisting of 280 Spaniards and 600 native allies ) , this time led by Legazpi himself . Seeing them approach , the natives set the city on fire and fled to Tondo . The Spaniards occupied the ruins of Maynila and established a settlement there . On May 19 , 1571 , Legaspi gave the title " city " to the colony of Manila . The title was certified on June 19 , 1572 . Under Spain , Manila became the colonial entrepot in the Far East . The Manila - Acapulco Galleon Trade between the Philippines and Mexico flourished thereafter . However , a Kapampangan chieftain of the Macabebe tribe , later identified as Tarik Sulayman , refused to submit to the Spaniards and gathered together a force composed of Kapampangan warriors after failing to get the support of the chieftains of Manila ( Lakandula , Matanda ) and Hagonoy . Battle . On June 3 , 1571 , Tarik Sulayman , supported by Rajah Sulayman , led his troops down the Pampanga River and fought the battle in the bay of Bangkusay , off the port of Tondo . The Spanish ships , led by Martin de Goiti , were ordered to be fastened two by two . This resulted in a formation of a solid mass which seemed to be an easy target . The native warships were lured to this deceptive technique when they surrounded the Spanish . After being surrounded , the Spanish fired at the natives . Soon , the native fleet was scattered and destroyed . The chief who died at Bankusay is sometimes identified with Rajah Sulayman of the Kingdom of Maynila , Lakandula ' s contemporary . However , it was clear in the Spanish records that Rajah Sulayman was able to survive the battle by escaping to Pampanga . It was the nameless Pampango chief , identified as Tarik Sulayman , that fell in the battle . Aftermath . Legazpi was able to establish a municipal government for Manila on June 24 , 1571 . The initial population of the city was around 250 .