Manila  - Philippine President Gloria Macapagal Arroyo appointed the country's recently retired military chief as her top adviser on peace talks with communist and Muslim rebels, her spokesman said Sunday.

Hermogenes Esperon, who retired as armed forces chief of staff on May 12, will replace Jesus Dureza as the presidential adviser on the peace process, outgoing presidential spokesman Ignacio Bunye said.

He said Dureza will replace him as press secretary.

Esperon will take over the position of presidential adviser on the peace process amid fears of escalating hostilities in the southern region of Mindanao after the withdrawal of Malaysian peacekeepers.

The Malaysians have headed an International Monitoring Team in the southern region of Mindanao since 2004 to oversee the implementation of a 2001 ceasefire agreement between the Philippine government and the Moro Islamic Liberation Front (MILF).

Other members of the monitoring team are from Brunei, Canada and Japan. The team's presence has greatly reduced the number of armed confrontations between the Philippine military and the MILF.

Esperon said he was "awed" and "humbled" by his new assignment, and added that "the challenge is by itself the incentive and inspiration."

"I'm ready," he said.

Bunye, who will continue to serve as presidential spokesman until July 3 when he becomes a member of the Monetary Board, said Dureza and Esperon will assume their new posts on June 16.

The changes were part of a cabinet revamp announced earlier in the month by Arroyo, who continues to battle declining popularity and public satisfaction amid allegations of corruption against her family and key political allies. (dpa)