The Conservatives said Sir Michael had echoed their view that UK troops had long been over-stretched.
Five-hundred UK troops are due to be withdrawn from Helmand Province this year, leaving 9, 000.
Mr Hammond paid tribute to the 383 UK troops who have died since the conflict began.
BBC: Philip Hammond: Afghanistan progress not 'irreversible'
In May, the MoD suggested setting up a network of combat simulators to train US and UK troops involved in joint operations.
Speaking on the Andrew Marr show on BBC One, Mr Hammond also ruled out accelerating the withdrawal of UK troops from Afghanistan.
On Wednesday, Prime Minister Gordon Brown announced that improvements in security meant that UK troops would be withdrawn from Iraq by July 2009.
Air Marshal Burridge said US-led troops would approach Baghdad in the same "deliberate" way UK troops had approached the southern city of Basra.
In 2008 the government defeated Conservative attempts to force a public inquiry, saying it would be a "diversion" for UK troops serving in Iraq.
The withdrawal of 3, 800 UK troops from Afghanistan this year is unlikely to take place until the autumn, Britain's top general in the country says.
Captain Abdul Manan, the young Afghan army commander in Nahr-e-Saraj, shrugs when I ask him what he thinks will happen when the UK troops go.
Veterans had gathered on the clifftop overlooking Gold Beach where thousands of UK troops came ashore in the assault on Normandy on June 6, 1944.
The UK troops arrived with around 60 U.S. personnel in eight C-130 aircraft on Thursday to inspect the base for possible use in a large-scale humanitarian operation.
James Bond star Daniel Craig has surprised UK troops at Camp Bastion in Afghanistan by coming to visit them as they prepared to watch his latest film.
BBC: James Bond star Daniel Craig visits Camp Bastion troops
Sir Malcolm said that while DfID would not be able to maintain a base in Helmand province when UK troops withdraw, aid projects must continue through local partners.
In his first statement to MPs since taking on the new role Philip Hammond said UK troops in Helmand province were having a "tangible impact" on insurgent activity.
BBC: Philip Hammond: Afghanistan progress not 'irreversible'
Prince Harry is to tour the US to promote the rehabilitation of injured American and UK troops, publicise his own charities and support British interests, St James's Palace says.
BBC: Prince Harry to tour US to promote troops' rehabilitation
There were also crucial questions over how many UK troops should be on the ground, how to tackle the opium trade, and how to engage with neighbouring states, he added.
Deputy secretary-general Dr Daud Abdullah faced calls to resign after it was alleged he signed a public declaration of support for Hamas which ministers said condoned violence against UK troops.
The BBC's Ian Pannell, who is travelling with UK troops in Helmand, says the latest phase of the offensive involves a major land assault, with soldiers backed up by artillery and air support.
Brosnan's character bears an uncanny resemblance to Tony Blair, the former British prime minister who faced a grilling at a public inquiry earlier this year over his controversial decision to send UK troops to Iraq in 2003.
He said security in Helmand was improving, with Afghan forces now responsible for the bulk of the province - but that the environment in which UK troops operated remained "risky and dangerous including the threat of improvised explosive devices and insurgent attack".
Britain is entering a team for the first time in the Warrior Games - a Paralympic-style competition - and the prince is known to be a supporter of the competition, after he met UK troops who took part as individuals last year.
BBC: Prince Harry to tour US to promote troops' rehabilitation
On Monday, Mr Cameron insisted no UK ground troops would be deployed to the conflict in Mali, where French forces are fighting Islamist rebels.
"It's a great way to support the UK's troops and their families, " said WMC's Fiona Allan.
David Cameron's spokesman said UK and international troops would then offer a "supporting combat role" in 2014.
At the news conference, Mr Hoon also confirmed America had asked if the UK would provide troops for a possible Iraq war.
Six other soldiers were injured in the blast near Lashkar Gah as UK and US troops started a major offensive against Taliban militants in southern Afghanistan.
West African bloc Ecowas has authorised the immediate deployment of 2, 000 troops to Mali and UK Prime Minister David Cameron said British forces would offer logistical assistance to help transport troops and equipment.
BBC: Hollande steps up France security over Mali and Somalia
Chancellor George Osborne had already said the UK would compensate any British troops in Cyprus hit by plans to introduce a bank levy.
BBC: MoD flies emergency cash to Cyprus for British personnel
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