The Philippine Government has moved to limit the political damage after Vice-President Teofisto Guingona was apparently sacked as foreign minister and then re-instated hours later.

President Gloria Arroyo's senior aides on Friday insisted the fiasco had not undermined her authority or the credibility of Mr Guingona.

The fact is, there is trust between the president and the vice-president

Presidential spokesman Silvestre Afable

"The fact is, there is trust between the president and the vice-president. I'm sure this will help him (Guingona) in continuing to perform his responsibilities," presidential spokesman Silvestre Afable told reporters.

Thursday was mired in confusion as it was announced that Mrs Arroyo had accepted Mr Guingona's resignation - and then hours later that he was in fact staying on.

Mr Guingona had insisted all along that he had not resigned from the foreign office, and demanded a one-to-one meeting with the president to clear up the matter.

Following the meeting, Mr Afable told reporters he had made a mistake by releasing a signed letter from the president, addressed to her deputy, which referred to "honest differences of opinion".

'Solid team'

The vice-president had openly opposed the deployment of US troops, who arrived in January to help train Philippines troops to combat Islamic rebels in the country's south. Mr Guingona had threatened to resign over the issue but had in the end supported the president.

The US troops are banned from combat

On Friday, Mrs Arroyo's aides admitted there were still policy differences over the issue, which is again coming to a head over whether the six-month operation should be extended.

"I can only say that there have been disagreements between the president and the vice-president, basically over the terms of reference in the deployment of US troops," said Mr Afable.

But Jose Rufino, a presidential adviser on political affairs, said the cabinet remained united.

"Once the president makes a decision, the vice-president and foreign secretary supports that position," he said.

"These things are discussed and articulated behind closed doors and when we walk out the cabinet room, we are one solid team."

The US troops are barred from combat except in self-defence. But nationalists, like 73-year-old Mr Guingona, oppose their presence over fears it could undermine national sovereignty.

In recent days Mrs Arroyo has publicly supported calls for fresh military exercises between the Philippines and the US which are due to end on 31 July.