The army said the campaign in the Sinai Peninsula had "achieved its goals" in destroying militant hideouts and equipment, in joint operations by special forces, armoured divisions and the air force.
The next phase would see the military and police assert full control over the North Sinai towns of El-Arish, Sheikh Zuweid and Rafah, it said in a statement.
In previous statements on the campaign, the military had announced having killed scores of militants and captured dozens.
The military said the attack on July 1 killed 17 soldiers.
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A health ministry spokesman had been quoted by the state-owned Ahram news site as giving a toll of 21 soldiers, but he has since clarified to AFP that the tally included four civilians.
Islamist militants have killed hundreds of soldiers and policemen in attacks since the army overthrew Islamist president Mohamed Morsi in 2013, ushering in a crackdown on his supporters.
Militants in Sinai last year pledged allegiance to the Islamic State group that controls parts of Iraq and Syria.