KUALA LUMPUR - MALAYSIA will pull the remainder of its peacekeepers out of the southern Philippines this month, the foreign minister said on Thursday, signaling frustration with stalled talks between Manila and Muslim rebels.

Malaysia began withdrawing 40 cease-fire monitors from violence-scarred Mindanao island in April because of frustrations over a lack of progress in peace negotiations between the Philippine government and the Moro Islamic Liberation Front.

But at least 12 Malaysian peacekeepers have remained in recent months with a monitoring team that includes both military and nonmilitary personnel from Brunei, Libya and Japan.

Malaysia's participation will be halted when their current peacekeeping mandate ends Nov 30, Foreign Minister Rais Yatim said in a statement.

'Malaysia is prepared to consider its future participation... when there is progress in the peace process and a formal request is made' by both sides, Mr Rais said.

'Malaysia remains supportive of the peace process and hopes that both sides opt for dialogue and negotiations in bringing about a peaceful solution in Mindanao,' the statement added.

The statement did not say whether Malaysia will continue to formally broker peace talks between Manila and the rebels, which have been battling for self-rule in the predominantly Roman Catholic Philippines' volatile south for decades.

The peacekeeping team has been credited with easing violent clashes. Under a 2003 cease-fire, clashes have dropped from up to 700 a year to just 15 last year.

The government suspended talks with the rebels in August after three guerrilla commanders went on a bloody rampage, killing dozens in predominantly Christian communities.

The rebels said their men were frustrated after the Supreme Court scrapped a preliminary autonomy deal for minority Muslims, ruling it was unconstitutional. -- AP