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COTABATO, Philippines, Feb 20 (Reuters) - A bomb exploded in a market in the southern Philippines killing at least one person and wounding several, the military said.

"We have casualties, dead and wounded. We don't know yet how many they are," army major Julieto Ando told Reuters by phone.

"Our initial report is that the bomber was apparently killed while planting the bomb."

Local radio said at least seven people were wounded.

The explosion occurred at 9.40 a.m. (0140 GMT) in a market in Kabakan on Mindanao island, about 800 km (500 miles) south of Manila.

The blast came five days after government forces captured a camp of the Moro Islamic Liberation Front (MILF) with heavy casualties on the guerrilla side.

Philippine President Gloria Macapagal Arroyo said on Wednesday she had approved the draft of a peace agreement with the MILF but gave no details of the proposal to end 31 years of fighting with the largest of four Muslim separatist groups in the mainly Roman Catholic country.

MILF spokesman Eid Kabalu said the rebels would not agree to a resumption of the stalled peace process until soldiers had pulled out of territory they took last week.

Government forces drove the rebels out of their base in the town of Pikit on Mindanao island last weekend after five days of clashes which the military said had killed about 150 rebels and eight soldiers. The MILF said it suffered 40 dead. 

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