U.S. President George W Bush yesterday said that he was willing to work with President Gloria Macapagal-Arroyo "in any way she wants to" in order to solve the problems with the southern Philippines-based extremist group, the Abu Sayyaf.

A report issued by the presidential palace in Manila quoted Bush as telling reporters in Washington that "the Philippines is a great ally, they're close friends, and we're willing to cooperate in any way she suggests in getting rid of the Abu Sayyaf."

Bush issued the statement following a meeting with Arroyo, who is on the homestretch of her three-day working visit in the U.S capital.

Asked if that included combat troops, Bush said: "That's going to be up to the President (Arroyo). I have asked her point-blank, what help does she need. She says she's got a great military, a competent military, she's confident that her military can deal with Abu Sayyaf.

"For that, I applaud her and will wish her all the best. And we want to help her military deal with them," Bush added.

Arroyo said there was a framework that the two nations could work within on how to fight the Abu Sayyaf and how to fight terrorism in the southwestern part of the Philippines.

"The framework covers what we need, in terms of diplomatic assistance, technical assistance, assistance in winning hearts and minds, military assistance."

The group has also been linked with the Al Qaida.

Bush was quoted as saying: "We're going to fight terror wherever it exists, and we will work with our allies and friends to use whatever resources we have to win the war against terror."

"And so we are looking for opportunities to help friends and allies to strike against Al Qaida, wherever it exists," he said.

"There will be other places where we need to work around the Al Qaida and other terrorist organisations and President Macapagal-Arroyo and I are having a discussion, a continued discussion, about how we can help the Philippines," he said.

"We've got no better friend in that part of the world than the Philippines," said Bush.

Both Filipino and American legislators have lauded Arroyo's visit to the U.S., citing its gains in the area of acquiring military and economic aid to resuscitate the faltering local economy.

Earlier, Philippine officials and their American counterparts signed a series of agreements that would help improve the country's economy and rehabilitate Mindanao.

The total aid package garnered by Arroyo's latest U.S. visit amounted to $4.6 billion. "I see a blossoming in the political and economic relations between America and the Philippines and a full restoration of the relationship. This is a beautiful development," Jose de Venecia, speaker of the Philippines House of Representatives said in a radio interview from Washington.