Asked by reporters if there were plans to extend the ongoing joint military training exercise in Basilan, the President said "it is not really a matter of extending it because Balikatan is a continuing exercise."
"We can have another one," Mrs. Arroyo said.
She pointed out, however, that exploratory talks on the issue should be done first at the military level.
Mrs. Arroyo said Armed Forces of the Philippines (AFP) chief Gen. Roy Cimatu and Adm. Thomas Fargo, US commander-in-chief of the Pacific (CINCPAC) should sit down and discuss the operational aspects before the plan is presented to her for approval.
"But so far, they have not brought it up to me yet," the President said during an informal luncheon press conference at the ancestral home of Dr. Jose P. Rizal, in Calamba, Laguna where she led observance rites for the 141st birth anniversary of the countrys national hero.
The President also said Basilan officials and their constituents were in favor of extending the stay of the US military engineers undertaking infrastructure projects in the strife-torn island province.
The US government has allocated $4 million for the construction and rehabilitation of roads, bridges, seaports, irrigation systems and an airstrip in Basilan.
Mrs. Arroyo also cited a recent telephone conversation with US President George Bush where they agreed to sustain the campaign to ultimately annihilate the Abu Sayyaf terror group that has been linked by officials of both countries to the al-Qaeda network of Saudi-born terrorist Osama bin Laden.
"He agreed with me that we should go on with our battle against the Abu Sayyaf and terrorism," she said.
Mrs. Arroyo said Bush called her up following the June 7 encounter in Sirawai, Zamboanga del Norte between Philippine troops and Abu Sayyaf bandits, that ended the yearlong hostage crisis in the south.
Two of the three remaining Abu Sayyaf captivesAmerican missionary Martin Burnham and Filipino nurse Edibora Yapwere killed in the fierce firefight, while Burnhams wife Gracia was rescued although wounded in the right leg.Marichu Villanueva