(Adds quotes from military chief)

By Manny Mogato

MANILA, June 14 (Reuters) - A Philippine navy officer who led an attempted coup against the government four years ago was declared elected to the Senate on Thursday, underlining the unpopularity of President Gloria Macapagal Arroyo.

Lieutenant Antonio Trillanes clinched the 11th seat of the 12 that were contested in the May 14 senatorial elections, Commission on Elections chairman Benjamin Abalos told Reuters.

The opposition has dominated the contest for the Senate -- along with Trillanes, seven of its candidates have been declared winners so far against two for the administration. Two independents are also in the house and the opposition has the edge in the one seat that is to be decided.

But the administration swept elections to the House of Representatives and has about 200 seats in the 275-member legislature.

Only half the Senate's 24 seats were contested in this year's election. The full house will be dominated by the opposition, allowing it to block the government's policy initiatives if it chooses.

But if the senatorial election was a setback for Arroyo, Trillanes' win is a slap in the cace. The navy officer made no secret of his opposition to the government and to military top brass during the campaign, which he conducted from his jail cell.

"The only way for this country to move forward is to get Gloria out of the way," a defiant Trillanes told reporters at his detention cell earlier this month.

"I'm going to live up to that advocacy, but if the people will eventually say no, then I am going to accept that as a fact."

If Trillanes gets a seat in the powerful bicameral Commission on Appointments, he would have a say in the promotions of senior military generals. He would also be able to block budget proposals for government departments.

NOT A PROBLEM

The military said it was not concerned.

"Why should we look at him as a problem?" military chief General Hermogenes Esperon told reporters. "People will now see that it's better to take the constitutional way of doing things rather than creating trouble."

But he said he opposed giving Trillanes bail and said the officer would have to appeal for a daily furlough from detention to attend the legislature.

"There's no such thing as bail in the military," Esperon said. "If we disregard the Articles of War, then we might as well forget discipline in the armed forces. Let's forget that we have an army."

Trillanes's lawyer said he would appeal in court to allow him to attend Friday's proclamation of his victory.

He faces rebellion charges at a lower court in Manila's financial district and several violations of the army's articles of war before a military tribunal.

If found guilty, he has to give up his Senate seat.

Trillanes, 35, led a mutiny of young army officers against Arroyo in 2003.

While some of the mutiny leaders have reconciled with the president after making public apologies, Trillanes has remained unrepentant, criticising Arroyo's government for widespread corruption and rights abuses.

With only a 5 million pesos ($109,000) budget, raised by selling his battered car and contributions from relatives, Trillanes was the lowest spending front-running candidate in the election.

Most Senate candidates spent upward of 50 million pesos.

His campaign gathered steam towards the end as opposition forces, including left-wing activists and a wealthy anti-Arroyo lawmaker, bankrolled television advertisements.

He placed third in votes cast by the military, despite efforts by senior defence and armed forces officials to dissuade troops and their families from supporting the coup leader.

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