Subic Bay, which faces the strategically important South China Sea, was a major US naval facility until 1992 when it was converted into a busy freeport by the Philippine government.
"The discussions are preliminary, but utilising Subic for our local navy could ideally be very strategic," said navy spokesman Lieutenant Commander Gregory Fabic. "It is a natural deep sea port that can accommodate the warships."
Department of Defense spokesman Peter Paul Galvez also confirmed the plan, which would include the transfer of two key warships acquired from the US.
"With this, Subic has been determined as the best alternative for the planned transfer," Galvez told AFP.
"Subic has a deep water port for the two (warships), it has an existing runway and airport facilities," he added.
The Philippine military, considered one of the weakest in the region, has been relying on excess US military articles to boost its capability.
In 2011, it acquired a decommissioned US coastguard cutter, and transformed it into its naval flagship called Gregorio del Pilar. A sister-ship, the Ramon Alcaraz is to arrive later this week.
The Philippine government last month also said it was drafting a plan allowing joint use of its bases with the United States and Japan, another country that is separately locked in a bitter sea dispute with China.
China claims nearly all of the South China Sea, even waters close to its smaller neighbours. The dispute has long been considered a potential flash point of conflict in the region.
The Chinese have effectively gained control of Scarborough Shoal after the Philippine navy backed down following a stand off last year.
"(The move to) Subic is to address all our security and defence concerns in Luzon and surrounding maritime domain," Galvez said.
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