Manila- The Philippine Supreme Court on Tuesday declared as unconstitutional a territorial deal between the government and Muslim secessionist rebels.

The high tribunal in early August stopped the signing of the agreement that would have expanded the existing autonomous Muslim region in the strife-torn southern island of Mindanao because of questions over its constitutionality.

The deal reached between government peace negotiators and the Moro Islamic Liberation Front (MILF) was eventually scrapped by President Gloria Macapagal Arroyo.

Opponents of the deal argued that the agreement violated the Philippine Constitution and could lead to the Balkanization of the country.

Eight Supreme Court justices declared the agreement unconstitutional while seven justices said there was no need to rule on the case because the government has already scrapped the deal.

In its 90-page ruling, the high tribunal said the government peace negotiators "exceeded their authority by the mere act of guaranteeing amendments to the Constitution."

The high tribunal also directed the government peace negotiators to conduct public consultations first before signing any deal with the MILF, which was founded in 1981 with the aim of establishing an independent Muslim state.

The scrapping of the deal has led to renewed fighting between the MILF and government troops that has killed more than 200 people and displaced more than 500,000. (dpa)