Philippine President Rodrigo Duterte has walked back on a decision to end a key military deal with the United States.

During a meeting with U.S. Secretary of Defense Lloyd Austin in Manila the President decided to recall or retract the termination letter for the Visiting Forces Agreement and said we are back on track.

US Defence Secretary welcomed Duterte's decision, saying it provides us some degree of certainty going forward.

He said a strong, resilient US-Philippine alliance will remain vital to the security, stability and prosperity of the Indo-Pacific.