Erdogan's ruling Justice and Development party swept municipal elections today, gaining 45.5 per cent of the votes and roundly beating the main opposition party, according to unofficial results.
Erdogan's party retained the key city of Istanbul and was leading in a close race in Ankara, where the results were likely to be contested.
Turkey's stock market rallied today, as Erdogan's win eased market concerns over instability. The Turkish lira strengthened against the dollar and the euro.
"(Erdogan) has seen that he has the support of a mass of people that believes in him and won't desert him under any condition," wrote Mehmet Tezkan, a commentator for Milliyet newspaper.
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Erdogan's presidential aspirations had been put in doubt after last year's anti-government protests, a corruption scandal and a series of restrictions on freedom, including blocking access to Twitter and YouTube.
The curbs on social media came after several audio recordings were leaked, suggesting corruption by Erdogan and family members.
He said Erdogan should answer the allegations of graft in court before seeking the presidency.
"A man with a questionable (reputation) cannot be president," Kilicdaroglu said.