Optical pulses as short as 98 fs at 1.57 mum have been successfully generated for the first time directly from a laser-diode pumped erbium-doped fibre laser with a nonlinear amplifying loop mirror. By using a low GVD polarisation sensitive isolator and reducing the fibre length in a nonlinear loop, 124 fs pulses were obtained. They were further shortened to 98 fs by installing an EDFA as an active pulse compressor and a positive GVD fibre for chirp compensation.