President Arroyo is keen to restart peace talks

The announcement comes after a senior policeman held prisoner by the communist New People's Army was killed during fighting between the guerrillas and government troops early on Thursday.

Mrs Arroyo's offer is part of her efforts to bring the Philippines' two main rebel groups back to the negotiating table.

Last month, she announced a unilateral ceasefire with Muslim separatist guerrillas in the south of the country.

Peace talks with both the Muslim separatists and the communists had collapsed under Mrs Arroyo's predecessor, Joseph Estrada, who was deposed in January by a popular uprising.

Hostage

The police hostage who died during Thursday's gunbattle would probably have been released shortly as part of an agreement to restart peace talks.

But a chance encounter between his captors and the army resulted in the chief inspector being shot. He died later from his wounds.

The offer of a ceasefire with the guerrillas in certain areas of the country is meant to ensure that a similar fate does not befall another NPA prisoner, an army officer, who is expected to be released soon.