Article published on the 2008-08-03 Latest update 2008-08-03 14:49 TU
The MILF broke off talks late last month over the question of "ancestral domain", the organisation's term for the Muslim homeland they belive should exist in the south of the predominantly Catholic country.
But today they say they are ready to sign an agreement which would extend the autonomous region in the south over a further 700 villages, if the inhabitants agree to be included in a plebiscite.
MILF leaders say that their "men on the ground" want peace and that talks have gone on long enough already.
The autonomous region would have its own legal, banking and education systems, as well as a civil service and internal security force.
A leaked draft also proposes that it could send trade missions abroad and enter into international economic agreements.
Some Catholic leaders have publicly opposed the deal, which is now likely to be signed on Tuesday in Malaysia.
The agreement would not be a final peace agreement but correspondent Girlie Linao says that it would be an important step towards one.
"For the MILF this agreement on the proposed Muslim homeland is a key step towards resuming formal peace talks which have been suspended since December 2007," she told RFI.
A definitive peace agreement would have to include plans for the future of the MILF's 12,000 fighters.