Malaysian Prime Minister Mahathir Mohamad assured Arroyo of his governments support when they met earlier this week in Japan while attending a regional conference, the President said.
"I had a chance to meet with Prime Minister Mahathir about the MILF. His government remains ready to help us achieve a just and permanent peace in Mindanao," Mrs. Arroyo said in her weekly radio address, a day after she arrived from a four-day trip to South Korea and Japan.
"I am determined to use diplomacy to help our country."
Malaysia, a member of the influential Organization of the Islamic Conference (OIC), has been helping broker peace negotiations between the two sides and early this year hosted exploratory talks in Kuala Lumpur.
The peace process, however, was in limbo after government accused the MILF of being behind a spate of bombings and raids that has left about 100 dead in southern Mindanao island since March.
The rebels have denied being involved, but Arroyo last month gave the military the go ahead to launch preemptive strikes against MILF positions in a bid to flush out what she called the "terrorists among them."
Arroyo said peace talks would only resume if the MILF surrendered members who played a role in the attacks and if the 12,500-strong rebel group provided proof it did not have links to terror groups like the al-Qaeda and the Jemaah Islamiyah (JI).
She also refused to reciprocate a 10-day ceasefire declared by the MILF from June 2, saying it could be a tactical ploy to allow rebel forces to consolidate and plan further attacks.
Military intelligence forces last week arrested an Egyptian national and an alleged top MILF terrorist in Cagayan de Oro City while trying to board a flight to Manila.
The MILF operative, Muklis Yunos, is said to have planned bomb attacks in Manila in 2000 along with Indonesian JI suspect Fathur Rohman al-Ghozi, who has been convicted here on charges of illegal possession of explosives. About 22 died in the bombings and some 100 injured.
Yunos is currently under interrogation, while the Egyptian is being held for violating immigration laws, police said.
The MILF, which has been fighting for the establishment of an independent Islamic state in the south since 1978, has repeatedly denied any links to terror groups.