MANILA, Sept 9 (Reuters) - The Philippines' potential

purchase of F-16 fighter jets from the United States has been

put on hold due to budget constraints, Manila's ambassador to

Washington said on Tuesday.

The U.S. State Department approved the potential sale, valued at

an estimated $5.6 billion, earlier this year in what was seen as

a significant capability boost for the Philippine Air Force amid

rising regional tensions.

"Right now, I think it's on hold, mainly because ... the

funding is the key element of this whole purchase," Jose Manuel

Romualdez, the Ambassador to the United States, told reporters.

Romualdez said Defense Secretary Gilberto Teodoro has said

there were other priorities for the Armed Forces of the

Philippines ahead of such a big-ticket item.

"We'll see how it goes in the coming budget deliberations on

how the AFP will spend the allotted amount for the modernisation

program," he said. "But like I said, it's really the funding

that is the choke point."

In June, the Philippines has signed a 975.3 billion won ($703

million) deal for 12 FA-50 fighter jets from South Korea.

The Philippines has stepped up military modernisation in

recent years, prioritising naval and air defence assets to

strengthen its capability in the South China Sea, but officials

have acknowledged budget limitations on what can be done.

($1 = 1,387.21 won)