The Government of the Philippines ( GPH) said Tuesday that peace talks with the Communist Party of the Philippines-New People's Army-National Democratic Front (CPP-NPA- NDF) is now back on track.

Government peace panel headed by Alexander Padilla, in its New Year's message, described the peace process with the leftist rebels to be most challenging since it began over two decades ago.

"Despite the setbacks, we are now back on track working together for a just and lasting peace. The process has moved forward," the panel said, citing the joint cease-fire that is in place between the government troops and the insurgents.

"We pray that the cease-fire will hold and help steel the resolve of both sides for a just and enduring peace now and not later. This we owe to our people," it added.

A Yuletide truce between the government and the CPP-NPA-NDF has been ongoing since December 20, 2012 and will end on January 15.

"Both panels have laid the foundation for the continuation of the GPH-NDF peace process. There is no reason for us not to make more headway in 2013," the panel added.

The peace talks between the government and the NDF, the political wing of the CPP-NPA, resumed on December 17-18 under a special track at The Hague through the facilitation of Ambassador Ture Lundh of the Royal Norwegian Government.

The CPP-NPA-NDF has been waging war against the government for over four decades.