"A unilateral ceasefire may be declared because it has been a tradition during Christmas, which is a season of peace," presidential adviser on the peace process Eduardo Ermita said on local radio.
However, police and military personnel would remain on heightened alert to thwart possible attacks by the New Peoples Army (NPA), the armed wing of the Communist Party of the Philippines.
The group has been waging a 33-year Maoist insurgency in the countryside and has been stepping up its offensives after the US and EU placed the NPA in their list of foreign terrorist organizations.
On Saturday, suspected NPA guerrillas burned a telecommunications relay facility owned by Globe Telecom near the town of Lian in Batangas, the military said.
It was the fifth attack on a Globe facility in the area since July this year.
"Extortion is the most likely motive in this incident. The rebels have admitted this in the past," said regional Army spokesman Maj. Jose Broso.
He said the military was expecting the NPA to intensify its attacks as the founding anniversary of the underground communist movement on Dec. 26 approaches.
"It has been their practice to mark their anniversary with attacks in order to project themselves as still a force to reckon with," Broso said.
President Arroyo last year suspended peace talks with the communists after the NPA assassinated Congressmen Rodolfo Aguinaldo of Cagayan and Marcial Punzalan of Quezon. AFP