MANILA, June 27 (Reuters) - The Philippines has chosen a retired army general as the chief government negotiator in talks with the country's largest Muslim rebel group, President Gloria Macapagal Arroyo's executive secretary said on Wednesday.

Eduardo Ermita said the Moro Islamic Liberation Front (MILF), the rebel group negotiating to end nearly 40 years of rebellion in the south, has also welcomed the appointment of retired Lieutenant-General Rodolfo Garcia.

"General Garcia has the approval of the President to be the one to take over as chairman of the negotiating panel," Ermita told a press briefing on Wednesday, adding Arroyo would sign the ex-general's appointment as soon as she returns from abroad.

Ermita said Garcia was also endorsed by Silvestre Afable, the chief negotiator who resigned two weeks ago, and Jesus Dureza, the president's peace adviser.

Garcia, 58, is not a stranger to the peace process because he has been a member of the government's negotiating panel since July 2004 when he retired from military service.

The former vice commander of the Philippine military also headed the government's truce panel, which monitors a ceasefire with the MILF, for almost a year until his retirement.

"Personally, he's okay," said Von al Haq, head of the MILF's ceasefire panel. "He has vast knowledge and understanding of the problems in Mindanao. I believe he's solution-oriented."

Last week, the government took back the appointment of a Roman Catholic priest as chief peace negotiator after rebel leaders opposed the choice. They said Father Eliseo Mercado did not have the clout to make political deals.

Mercado was forced to quit four days after his appointment was announced, replacing Afable, a cabinet-rank officer who resigned amid reports that he was not getting full support from Arroyo and the powerful military.

The government has been talking with Muslim rebels to end a conflict that has killed more than 120,000 people and displaced 2 million in the south of the mainly Roman Catholic country.

Talks over the size and wealth of a proposed homeland for 3 million Muslims have been stalled since September 2006 although backroom discussions continued, resulting in a breakthrough in December when Manila agreed to grant Muslims the right of self-determination.

Talks were set to resume in Malaysia in early July until Afable quit, causing delays. There was no immediate word on any new date.

AlertNet news is provided by