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Speaking at a foreign correspondents' forum, Estrada said he had extended a previous December 31 deadline for a peace accord with the Moro Islamic Liberation Front (MILF) by six months on the recommendation of his peace panel.
Asked what would happen if no peace accord was signed by then, Estrada said, "If the need arises, I have to assert that there is only one government in the Philippines."
Government and MILF negotiators are to resume formal peace talks next week to try for a political settlement to the 21-year rebellion.
The Muslim group has about 15,000 fighters on Mindanao and nearby southern islands, according to the military. It was left out from a 1996 peace deal between Manila and the larger Moro National Liberation Front (MNLF), from which it had split.
Despite the peace talks, fighting frequently breaks out between the government and the MILF. Earlier this week, the MILF clashed with the military in the southern Philippines again, leading the Muslims to briefly occupy a town hall and block a highway.
One soldier, two civilians and 10 Muslims were killed and 29 soldiers and civilians were wounded before the MILF withdrew.
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