The missiles are being funded under a US Congress Act that allows the Defense Department to train and equip foreign armies allied with Washington to fight militants across the world since 2006.

Philippine defense and military officials could not say what type of guided missile equipment would be provided. Troops in the south have said they need unmanned drones to help hunt down militants on small remote islands.

“Fiscal year 2010 assistance for the Philippines provides a precision guided missile capability to assist Philippine armed forces’ counter-terrorism efforts in southern regions to combat the activities of the Jemaah Islamiah and Abu Sayyaf Group,” said the document, which was shown to Reuters by a Defense Department official.

A US Embassy spokeswoman confirmed there were funds available to the Philippines under the program, but did not comment on what they would be used for.

The Philippines has no missile capability. Most of its ships and aircraft are Vietnam War vintage. It spends about 1 percent of GDP for defense and security, but 70 percent of the budget goes to paying salaries and allowances of 130,000-member army.

Since 2006, the US has allocated about $1.2 billion under the National Defense Authorization Act to help boost counter-terrorism capability of about 35 allies across the world.

Including the funds for the missiles, the Philippines has received more than $73 million under the program. Indonesia and Malaysia have received smaller amounts to improve maritime border control.

Remote southern islands in the Philippines have become training bases and a sanctuary for Southeast Asian militants. Intelligence reports say about 50 Indonesian, Malaysian and Singaporean militants have been hiding on mainland Mindanao and nearby islands of Basilan and Jolo since early 2000.

Since 2000, Washington, through the State Department, has also provided about $500 million for military and development aid to help win over the Muslim minority in the country.