Fierce fighting between troops and ethnic Chinese rebels erupted in February in the Kokang region of Shan state, causing tens of thousands to flee their homes and angering Beijing when Myanmar's air force dropped bombs in Chinese territory and killed several civilians.
Kokang "remains unable to return to normalcy in terms of administration, peace and tranquillity and rule of law", according to the state-backed New Light of Myanmar newspaper.
The report said the state of emergency, which began in mid February and expired on Monday, had been extended until November 17 by an order from the president's office.
Sporadic civil wars have gripped Myanmar for some seven decades as militias in resource-rich and ethnically diverse border areas battled for greater autonomy.
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Fighting has spiked in recent years, despite the efforts of a new quasi-civilian regime to ink a nationwide ceasefire, with major battles in northern Kachin and Shan states that have displaced tens of thousands.
Peace talks earlier this month outlined a framework for what would be a historic deal, but negotiations stumbled on which rebel groups should sign.
Another meeting is expected in the coming weeks, but observers have warned that time is running out before elections that are likely to reshape the political landscape.
The UN Special Rapporteur on Myanmar, Yanghee Lee, this month raised concerns that thousands of people could be disenfranchised in conflict areas, "where elections may be cancelled for security reasons", and called for more transparency on the poll procedure.
The government has accused rebels of being enmeshed in drug smuggling.