Theresa May's statement came as her government faced severe criticism over the policing cuts and questions over intelligence failures after terror attacks on London Bridge, Manchester and Westminster.
Theresa May had finally scrapped the control orders in 2010 when she was the home secretary.
This policy has the potential to cause splits within the Tory party, as different factions see the Human Rights Act as either a European interference or a key piece in the apparatus of the rule of law.
She pointed to longer jail terms for terrorism offences, even minor ones, and said internet companies should deny extremism a place in which to breed.
"And I mean doing more to restrict the freedom and movements of terrorist suspects when we have enough evidence to know they are a threat, but not enough evidence to prosecute them in full in court. Certainly the Labour Party had a three line whip on it, and I led for that on it and we worked with the Prime Minister to ensure..."
"This is exactly the time that human rights must be protected and cherished, not attacked and undermined", said the charity.
May replaced Control Orders with Terrorism Prevention and Investigation Measures (TPims), which require suspects to stay overnight in an address for up to ten hours - but it might not necessarily be their home.
After the ISIS called for attacks in the West in September 2014, the British security services grew increasingly concerned that al-Muhajiroun members, who had remained in the United Kingdom, would carry out terrorist attacks.
Attacker Khuram Shazad Butt was known to British intelligence services, while an Italian prosecutor said Britain was notified that one of his accomplices, Youssef Zaghba, was a "possible suspect" back in March 2016.
Speaking in London, Khan said over the last seven years the Met had lost 600 million pounds ($775 million) through Conservative government cuts, with a further 400 million pounds ($517 million) in planned cuts to the Met budget.
Liberal Democrat leader Tim Farron accused the Prime Minister of launching a "nuclear arms race" in terror laws which would reduce freedom, not terrorism.
Liberty director Martha Spurrier said: "If Theresa May does what she threatens, she will go down in history as the prime minister who handed terrorists their greatest victory".
Earlier, the Labour mayor of London Sadiq Khan said the Metropolitan Police force was facing the loss of between 3,400 and 12,800 officers - up to 40% of its strength - under Conservative spending plans.
"Our city has suffered two terrible terrorist attacks since I was elected as mayor - and we must do everything possible to stop there being any more".
Labour leader Jeremy Corbyn on Monday called on May to quit, pointing to the loss of 20,000 police jobs, mostly during her six years as interior minister under David Cameron.
'I mean longer prison sentences for people convicted of terrorist offences.
"The right response to the recent attacks is to halt the Conservative cuts and invest in our police and security services and protect our democratic values, including the Human Rights Act".