eace talks between the Philippine government and communistinsurgents broke down on Saturday after a dispute over the rebels' ordering their fighters to step up attacks.
But communist negotiators remained hopeful that the discussions being held at a seaside resort town in the Netherlands would continue, despite the suspension announced by government negotiators.
The two sides had just opened formal talks when chief government negotiator Jesus Dureza objected to the communists' telling guerrillas to intensify attacks in response to President Rodrigo Duterte's declaration of martial law in parts of the country.
"The government panel is now left without any other recourse but to announce... that it will not proceed to participate in the fifth round of peace negotiations," he said.
He added that talks would not resume until there were indications of an "environment conducive to achieving just and sustainable peace".
Philippines President Rodrigo Duterte declared martial law over the southern third of the country on Tuesday to quell fighting with pro-Islamic State group militants in a southern city.
Communists insurgents, who are active in wide areas of the archipelago, including the south, responded to his declaration by ordering their forces to "carry out more tactical offensives".
But communist alliance negotiators blamed government officials, saying their statement resulted from government officials announcing that New People's Army fighters would also be targeted in Manila's crackdown on Islamic extremists.
This was despite an assurance by Duterte -- relayed by government negotiator Silvestre Bello -- that the Mindanao martial law was not against the NPA, the NDFP, a coalition of several groups, of which the Communist Party of the Philippines (CPP) is among the most prominent, said in a statement.
"The facts on the ground belie the clarification made by Bello," it added.
Senior rebel negotiator Luis Jalandoni said that despite the government's ultimatum, the guerrillas' attacks would continue.
Government negotiator Silvestre Bello said the rebel panel had originally asked for a 10-minute recess to discuss the government's threat but refused to return to the table afterwards.
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