The Philippine government and the Moro Islamic Liberation Front (MILF) have resolved a key hurdle in their peace talks, bringing them closer to ending violence that has claimed tens of thousands of lives.

After six days of negotiations in Malaysia , Manila said it struck a compromise on sharing local revenues with a Muslim self-rule area in the Mindanao region that is expected to be led by the MILF.

The peace panels have completed the wealth-sharing annex on July 13, which paves the way for the two sides to decide how to divide up income from taxes and natural resources in the self-rule area.

After the wealth-sharing deal, the negotiators are expected to move on to how power will be shared between the national government and the Muslim self-rule area, and finally the disarmament of the MILF.

The negotiations also aim to create an autonomous region for the Muslim minority in Mindanao .

The 12,000-member MILF has waged a guerrilla war for a separate Islamic state in Mindanao since the 1970s that has claimed an estimated 150,000 lives and made over two million people in the south leave their home.

The Philippines ’ government and MILF signed a preliminary deal in October 2012 outlining the broad terms for a peace treaty that would be signed in 2016.-VNA