Cotabato City, Philippines - A homemade bomb was found Friday in an elementary school in the southern Philippines, where security has been stepped up in the aftermath of intense fighting between government forces and Muslim rebels.

The bomb was discovered by civilians in one of the buildings of the public school in Mlang town in North Cotabato province, 930 kilometres south of Manila, said Major Armand Rico, a regional military spokesman.

"Many pupils were already at the school," he said.

Manila - Two communist rebels were killed Friday in a clash with government troops in an eastern Philippine province, an army spokesman said.

Kidapawan City, Philippines - Philippine troops on Thursday recovered a homemade bomb planted near a public market in a southern province where days of fighting with Muslim separatist rebels have displaced nearly 160,000 people, the military said.

The device was found in a bag left near a garbage collection area of an old bus terminal in Kidapawan City in North Cotabato province, 930 kilometres south of Manila, which is near the wet section of the public market.

Manila - Fighting between government troops and Muslim separatist rebels in the southern Philippines, which has displaced nearly 160,000 people, were expected to end soon, a senior aide of President Gloria Macapagal Arroyo said Wednesday.

Presidential peace adviser Hermogenes Esperon said Moro Islamic Liberation Front (MILF) rebels were moving out of the villages they occupied in North Cotabato province, 930 kilometres south of Manila, due to intensified military airstrikes and ground assaults.

Manila  - The Philippines and East Timor signed on Tuesday three agreements to boost cooperation on marine and fisheries, education and foreign service training.

Philippine President Gloria Macapagal Arroyo and visiting East Timor President Jose Ramos-Horta witnessed the signing of the pacts during their bilateral meeting.

The agreement on marine and fisheries would increase consultations and cooperation in the sustainable development and responsible management of fisheries resources.

Manila - The death toll in fighting between government troops and Muslim separatist rebels in the southern Philippines has risen to at least 28 as the military vowed Tuesday to intensify its offensives against the guerrillas.

Troops have so far flushed out hundreds of Moro Islamic Liberation Front (MILF) rebels from two of 15 villages they have illegally occupied in the province of North Cotabato, 930 kilometres south of Manila.

Seven MILF rebels, one soldier and one civilian were killed in the fighting in North Cotabato, the military said.