US President Barack Obama is scheduled to arrive in the Philippine capital Manila on Monday afternoon for talks with President Benigno Aquino III. A military agreement is to be signed between the two countries just before Obama's arrival.

Banners welcoming the US president and national flags of the two countries have been placed over roads leading to the presidential palace where Aquino will welcome Obama. Manila is the last stop of Obama's Asian tour, which also covered Japan, South Korea and Malaysia. The tour is heavy on economy and security.

A 10-year military pact, the Enhanced Defense Cooperation Agreement, is due to be signed on Monday at the Defence Department shortly before Obama's arrival. The pact will allow a larger US military presence in the country. It would give American forces temporary access to selected military camps and allow them to base fighter jets and ships in the Philippines.