Corpus said in a letter to President Gloria Arroyo that it was best for him to step down in the interest of military unity and stability.

"I feel the restiveness will not calm with my continued presence," Corpus said in the letter, a copy of which was made public.

Corpus and Defense Secretary Angelo Reyes were accused by mutineers at the weekend of masterminding terrorist bombings in the southern Philippines to get more military aid from the United States.

Corpus denied the allegation, saying it was "without basis."

The mutineers surrendered after a 20-hour siege in a shopping and residential complex in the heart of Manila's financial centre.

"I think it is best for all that I get out of the picture. In chess, when a queen is beleaguered, it is sometimes necessary to sacrifice a knight to save the game," Corpus added.

The rogue troops who staged the mutiny on Sunday had demanded the resignation of Arroyo, Reyes and Corpus.

Arroyo accepted Corpus's resignation as intelligence chief but will retain him in the military, her spokesman Ignacio Bunye said.

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