Informal peace talks between the Philippine government and Muslim separatists are progressing "smoothly" in Malaysia, a spokesman for the rebels said yesterday.

"Talks are moving smoothly in Malaysia. It will last a few days under the watchful eyes of the Malaysian government," Eid Kabalu of the Moro Islamic Liberation Front (MILF) told AFP by telephone from the southern Philippines.

"We hope Manila will withdraw the warrant of arrest and bounty placed on MILF leaders, including myself," he added.