The Red Cross is appealing for funds to help more than 500,000 Filipinos displaced by fighting between government troops and the Moro Islamic Liberation Front in the southern Philippines.

The organisation says its annual budget for the nation is close to depletion, due to the conflict, and is seeking funds to provide relief aid for up to 80,000 people a month.

The Red Cross has also asked the government and MILF rebels to allow it access to displaced civilians, many of them sheltering in evacuation camps.

Clashes, the worst in five years, began early last month after the the Supreme Court blocked a draft peace agreement.

Manila has since suspended the peace talks with the MILF and has offered a $US535,000 reward for three senior rebel leaders accused of leading the raids.

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