MANILA, Philippines—Armed Forces of the Philippines (AFP) Chief of Staff General Victor Ibrado said he would serve out his term, as he shot down reports he would step down early to give way to officers associated with President Gloria Macapagal-Arroyo.

Ibrado also laughed off "Oplan August Moon," which will reportedly see him retire this year so that Arroyo's former Presidential Security Group (PSG) chief, Lieutenant General Delfin Bangit, could take over.

Bangit, the current Army commanding general, is a graduate of the Philippine Military Academy's 1978 class, which has adopted Arroyo as an honorary classmate or "mistah."

Ibrado is a member of PMA Class 1976. His early retirement could trigger a revamp that would install several of Arroyo's "mistah" in key positions, ahead of the May 2010 elections.

"I will finish my whole term," Ibrado told INQUIRER.net in a phone interview.

Asked about "Oplan August Moon," Ibrado said with a laugh, "Konektado sa Mooncake 'yan [That's connected to mooncake]."

Ibrado will retire in March 2010, two months before the general elections, after having served as military chief for 10 months.

He also denied rumors that he would retire early to prepare for a possible candidacy in his home province in the Visayas.

Ibrado said joining politics would be the "worst thing that I will do."

"Oplan August Moon" was allegedly linked to plans to keep Arroyo in power beyond 2010 by changing the Constitution, which could either result in a term extension or her assumption as prime minister in a parliamentary government.

Arroyo is rumored to be eyeing a House of Representatives seat in Pampanga province.