"Even if it is sad to say, I cannot extend him beyond the first extension because of military tradition," the President said.
Cimatu had served as AFP chief for just over one month when he reached the mandatory retirement age of 56 last July 4, but Mrs. Arroyo extended his term until Sept. 1.
Mrs. Arroyo said all three-star generals are automatic candidates as Cimatus successor.
"I will announce it (new AFP chief) on Sept. 1 and the takeover will be on Sept. 4," Mrs. Arroyo said.
She described Cimatus brief stint as the countrys No. 1 soldier as "very, very fruitful, memorable and historic."
Mrs. Arroyo said Cimatu "broke the back of the Abu Sayyaf" in pursuance of her administrations all-out offensive against the Muslim bandits who specialized in mass kidnapping for ransom.
"That was the continuation of his work when he was still a division commander," the President said.
She said her decision to ultimately end Cimatus military service was not borne out of her dissatisfaction with his performance, but in adherence to a military tradition.
Cimatus appointment as the 29th AFP chief was questioned by certain quarters in the military, saying he, too, will be retiring shortly.
Mrs. Arroyo defended her decision to pick Cimatu, formerly commander of the militarys Southern Command (Southcom) which covers the whole of Mindanao, saying it is her prerogative as commander-in-chief.
"I can take only one chief of staff at a time. Im supremely confident that I have chosen rightly for the service and the country the man who will lead the AFPs tradition of fine soldiers," the President said.
Adverting to attempts to block Cimatus appointment, Mrs. Arroyo expressed optimism that the "usual flurry of white papers and derogatory press siege would end, and I hope they dont resurface when its time to choose the next chief of staff."
As Southcom commander, Cimatu headed 40 percent of the 130,000-strong AFP and was in charge of operations in Mindanao where Abu Sayyaf terrorists operate.
He was given the moniker "General Pacman" for spearheading the militarys all-out campaign against the secessionist Moro Islamic Liberation Front (MILF) in July 2000, resulting in the capture of 19 rebel camps in Mindanao, including their main headquarters Camp Abubakar.
Cimatus predecessor, Gen. Diomedio Villanueva also had high praises for him.
"General Cimatus hat weighs heavily with the feathers of victory and success. Indeed, if there is one combat officer who leads his men across the line of departure, it is General Cimatu," Villanueva said. Marichu Villanueva