Malaysia-led ceasefire monitors will remain in the southern Philippines despite a deadlock in peace talks between the Philippine government and Muslim rebels, a top military official said, denying reports that the team would be disbanded.

Malaysia's Major General Mohamad Ismail Ahmad Khan, who heads the international observer team, said the withdrawal of the monitors would only worsen the situation in the region.

"We will not leave. They are always in talks. So we are optimistic that they will sign the peace accord," the Bernama news agency quoted him as saying. "Such rumours only make the public worried," he added.

The group handles complaints of violations of a 2002 ceasefire signed between the Philippines and the 12,000-strong Moro Islamic Liberation Front (MILF), which has been waging a 26-year separatist rebellion on this largely Christian archipelago.

The guns are silent

The presence of a foreign peace monitoring team in southern Philippines began in October 2004. It now comprises 41 Malaysian officers, 10 from Brunei and five from Libya.

Ismail said there had been no incidents since last September.

"The guns are now silent. There have been no battles between the Philippines army and the MILF," he said.

But the MILF warned in September that peace talks with the Philippine government were on the verge of collapse after both sides failed to break a deadlock on the control of land.

Earlier peace negotiations have been hampered by allegations from both sides of ceasefire violations. Malaysia has previously hosted peace talks between the government and rebels.