(Adds statements from President and military chief)

MANILA, Aug 18 (Reuters) - Muslim rebels attacked several towns on the southern Philippine island of Mindanao on Monday, burning homes and forcing hundreds of people to flee the latest outbreak of fighting, officials said.

Vowing to defend Mindanao, a region rich in nickel, gold and copper, President Macapagal Gloria Arroyo ordered troops to flush out the guerrillas from the towns.

The attacks came days after government troops halted an offensive against Moro Islamic Liberation Front (MILF) rebels in another part of Mindanao and were the latest since a territorial deal with the group stalled earlier this month.

"I condemn the dastardly attack and the violence sowed by the MILF early this morning in some towns of Lanao del Norte," Arroyo said in a radio address.

"We will crush any attempt to disturb peace and development in Mindanao."

She said was calling an emergency meeting of her national security council to come up with "firm and decisive actions" to defend Mindanao.

Last week, the military bombed MILF positions for four straight days, triggering an exodus of around 160,000 people, amid accusations the rebels had occupied Catholic farmlands.

But the MILF distanced itself from the latest attacks in Lanao del Norte, whose commercial capital Iligan, less than 20 km from where the attacks were taking place, is an important centre for steel and hydropower.

"Our leadership has not sanctioned these attacks. This has to stop if we can confirm the involvement of our forces," MILF spokesman Eid Kabalu said.

The military said the violence in Lanao del Norte showed that a significant portion of the 11,000-strong MILF did not support the organisation's peace efforts.

"It appears that several MILF subcommanders are not controlled by the MILF leadership and just using the peace process as a blanket to launch violent attacks against the people of Mindanao," armed forces chief, General Alexander Yano, told a news conference.

One resident said hundreds of people were fleeing the coastal town of Kauswagan on boat because the main road was blocked by fighting between armed locals and the rebels.

On Sunday, around 100 rebel fighters, armed with rocket-propelled grenades and machine guns attacked a military convoy, killing seven solddiers and wounding dozens.

Elsewhere in the province, five people were killed in rebel attacks, and a bus and several houses were burned, local radio said.

The situation on the ground has deteriorated rapidly since the Supreme Court earlier this month halted a territorial deal between the MILF and Manila that was meant to re-open formal peace talks to end a conflict that has killed over 120,000 people.

Legal experts expect the court will rule that the agreement, which gives a future government of an expanded Muslim homeland wide political and economic powers, is unconstitutional.

A further bout of violence is expected following such a decision but an all-out war is not considered likely as neither side has the resources to deliver a knockout blow.

(Reporting by Manny Mogato; Additional reporting by Rosemarie Francisco; Writing by Carmel Crimmins; Editing by Sanjeev Miglani)

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