The announcement was made by the visiting Australian Defense Minister Robert Hill and his Philippine counterpart Avelino Cruz.

The "status-of-forces agreement" provides a legal framework for Australian troops to train in the Philippines and is similar to one now in force with the United States, Cruz said.

The United States maintains a team of Special Forces advisers to train Filipino soldiers on Mindanao and nearby islands.

"The Australian counter-draft is with us and we'll be ready to submit our draft to Australia by November, after which there will be a negotiating panel to finalize the details," Cruz said.

"We welcome the move because we think joint exercises would be a benefit to both sides," Hill added.

Hill warned the two countries were now facing a common enemy in "terrorism."

"Terrorism is a very real threat to Australia," Hill said.

"And the possibility of terrorists moving in to the southern Philippines is also very real. We have a real vested interest to work with the Philippines to overcome that threat," he added.

Cruz said the Philippines was also examining similar agreements with Singapore, Malaysia and eventually other members of the Association of Southeast Asian Nations (ASEAN), saying this would boost the regional effort against terrorism.

"We intend to negotiate and conclude a status-of-forces agreement with all the members of ASEAN," Cruz said, adding that he hoped the accords would be completed "as quickly as possible."

However, Cruz stressed such agreements are considered treaties in the Philippines and would need the concurrence of the Philippine Senate to become binding.

Earlier Hill, who is on a four-day visit to the Philippines, said Australia would boost its security cooperation amid concern over Islamic militants on the southern region of Mindanao.

He expressed concern over alleged activities of the Jemaah Islamiyah militant group in Mindanao.

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