Manila, Philippines – Philippine President Rodrigo Duterte has recalled the termination of a key defense pact with the United States, his defense secretary said on Friday.

The Philippines served notice of the termination of the 1999 Visiting Forces Agreement (VFA) in February 2020 on the orders of Duterte, amid tensions over Washington's criticism of the administration’s controversial crackdown on illegal drugs.

But since then, Duterte has suspended the abrogation thrice amid the coronavirus pandemic and growing tensions with China over territorial disputes in the South China Sea.

"The president decided to recall or retract the termination letter for the VFA," Philippine Defense Secretary Delfin Lorenzana said on Friday in a press conference with visiting US Defense Secretary Lloyd Austin.

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"So the VFA is in full force again ... We are back on track," Lorenzana added.

Austin, who was in Manila for the last leg of his three-country tour of South-East Asia, thanked Duterte for the decision, which was made after he paid the leader a courtesy call on Thursday evening.

"Our countries face a range of challenges, from the climate crises to the pandemic," Austin said after meeting with Lorenzana on Friday.

"And as we do, a strong, resilient US-Philippine alliance will remain vital to the security, stability and prosperity of the Indo-Pacific," he added. "A fully restored VFA will help us achieve that goal together."

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On Thursday evening, Austin and Duterte "had an open and frank discussion on the status and future direction of Philippines-US engagement," a joint statement said.

"They agreed that the alliance can be further strengthened through enhanced communication and greater cooperation, particularly in the areas of pandemic response, combatting transnational crimes, including the war on illegal drugs, maritime domain awareness, the rule of law, and trade and investments," it added.

The VFA provides legal cover for the entry of US troops into the Philippines for joint training exercises with Filipino forces. The pact can be terminated through a written notice from either party, which would take effect in 180 days.

Hailing the Philippines as one of the oldest allies of the US and an "equal and sovereign partner," Austin said about 300 military exercises between US and Filipino troops are held every year under the VFA.

With Duterte's decision not to terminate the agreement, "this provides certainty for us going forward, [and] we can do long-range planning and new different types of exercises and incorporate more capabilities," he added.