Philippines President Gloria Arroyo has declared a unilateral ceasefire with communist insurgents over Christmas and the New Year.

Even we, who have been called godless terrorists, also celebrate Christmas with our comrades and families Rebel spokesman

Mrs Arroyo had previously stated that she would not declare a ceasefire, so that the momentum of military operations against the communist militant group the New People's Army (NPA) could be maintained.

However, in a speech marking armed forces day in the largely Catholic country, she said that she had ordered the suspension to give soldiers time with their families during the holiday period.

Arroyo said she wanted soldiers to have time with their families

In return, a spokesman for the Communist Party of the Philippines, of which the NPA is the armed wing, said that the group would declare its own ceasefire but remain in defensive positions.

"For our part, we want to avoid being the reason for the disturbance of our people's enjoyment of their traditional celebrations," Gregorio Rosal told the Associated Press news agency.

"Even we, who have been called godless terrorists, also celebrate Christmas with our comrades and families."

Terror threat

The BBC's Manila correspondent, John McLean, says that for many years, it has been the custom for the Philippine Government to declare a unilateral ceasefire with the communist guerrillas over Christmas and the New Year - and for the communists to respond by declaring a ceasefire of their own.

But this custom has been called into question, because this year the United States classified the Philippine communist movement as a terrorist organisation.

The 12,000-strong NPA has threatened to attack US troops participating in training exercises aimed at helping local soldiers wipe out the Muslim Abu Sayyaf group.

More than 40,000 people have been killed in more than 30 years of fighting between the NPA and the Philippines Government.