In his first interview since Turkey was scarred Saturday by its deadliest ever attack, Davutoglu insisted that a snap election would go ahead as planned on November 1 despite the bloodshed.
The attack on a rally of leftist, labour and Kurdish activists ratcheted up tensions to new heights in Turkey as the government wages a relentless campaign against Kurdish militants and also battles ISIL Terrorists.
"Looking at how the incident took place, we are probing Daesh as our first priority," Davutoglu told NTV television, using an alternative Arabic acronym for ISIL.
"We are close to a name (for one bomber). That name points to an organisation," he said.
Davutoglu however remained cautious, saying that authorities were also investigating the outlawed Kurdistan Workers' Party (PKK) and the far-left Revolutionary People's Liberation Party-Front (DHKP-C) as "potential suspects".
But this sparked an angry reaction from the pro-Kurdish Peoples' Democracy Party (HDP), which strongly disputes the official death toll and has released the names of 120 victims, claiming eight more have yet to be identified.
Turkey was long accused by its NATO allies of not taking a tougher line against ISIL as the group seized swathes of northern Iraq and Syria and battled Kurdish militias.
However after months of Western pressure, Turkey is now a full member of the US-led coalition against ISIL and allowing American jets to use its Incirlik air base for raids, making it possibly more vulnerable to attack.
With international concern growing over Turkey's stability, German Chancellor Angela Merkel is to visit Sunday to discuss Turkey and Syria, a spokesman said; AFP reported.