ALEOSAN, August 14, 2008 (AFP) - Villagers in the southern Philippines began trickling back to their ruined homes on Thursday, two days after government forces expelled Muslim insurgents who had stormed the area.

Loreto Cabaya, mayor of Aleosan town, led some 2,000 civilians back to their villages after the military cleared the area of possible booby traps and explosives left behind by the Moro Islamic Liberation Front (MILF) insurgents.

'They have started rebuilding their lives,' he said. 'Muslims and Christian residents here will start rebuilding the good relationship that was destroyed when members of the Moro Islamic Liberation Front stormed their villages.'

An estimated 160,000 civilians fled fighting that erupted last week after the Supreme Court halted the signing of a deal meant to pave the way for a settlement to end MILF's 30-year struggle for an independent Islamic state in the southern Philippines.

The MILF guerrillas, led by Commander Umbra Kato, refused to leave the area in North Cotabato province despite a four-year-old ceasefire between the government and MILF.

Fighting began over the weekend and intensified Monday, when artillery and helicopter gunships pounded areas occupied by the insurgents. The rebels were on the run by Tuesday, leaving behind burned and looted villages, booby traps and land mines.

Aleosan resident Apolinario Valencia, 39, said rebels looted his house.

'We lost some valuables, but for me, it is not the end of the world. What is important is we are alive,' he said.

Officials said the local government would provide money for people to rebuild their homes and for the families of six armed civilian volunteers who were killed resisting the rebels.

World Food Programme country director Stephen Anderson said his field staff reported about 16,000 families were too afraid to go home despite the retreat, with many seeking refuge in government evacuation centres.

'It is putting a strain on them to remain in this type of situation. But at the same time, people are fearful of their lives,' he said, adding, 'We don't think it is a humanitarian crisis yet.'