Philippine President Ms Gloria Macapagal Arroyo said she had ordered the suspension of military operations against Muslim separatists to clear the way for resumption of stalled peace talks.
President Arroyo, speaking in a televised news conference, also said the halt in military offensive against the Moro Islamic Liberation Front (MILF)would enable more than 200,000 people displaced by fighting to return to their homes.
Peace talks between Manila and the MILF, which is fighting for an Islamic state in the south of the mainly Catholic country, collapsed in August last year after then president Mr Joseph Estrada ordered an all-out offensive against the rebels.
Mr Estrada was ousted in a "people power" revolt last month which catapulted Ms Arroyo to power.