The Philippines will stick to its position on Sabina Shoal, it said on Thursday, even while exploring ways to ease tension in the area during "frank and candid" talks with China on managing disputes in the key waterway of the South China Sea.

Both countries agreed to continue their dialogue through diplomatic channels. Xianbin Reef, also known as Sabina Shoal, is in disputed waters of the South China Sea near the Spratly Islands, which China calls the Nansha Islands.

Analysts say removing Manila's coastguard ship from South China Sea hotspot an 'option', but miscalculation risks drawing in the US Beijing appears to be carefully weighing plans to tow a Philippine vessel it says is "illegally" deployed at a disputed atoll that has become a new flashpoint in the South China Sea.

The Philippines suspects China is attempting to reclaim land at Sabina Shoal. It has pointed to underwater mounds of crushed coral on Sabina's sandbars, which its coast guard filmed, saying Beijing is using that material to expand the shoal. Chinese state media has called such accusations "groundless".

The Philippines has reaffirmed its stance on Sabina Shoal in the South China Sea, despite ongoing efforts with China to reduce tensions. During a recent bilateral consultation in China, both nations agreed to continue dialogues on cooperation in several areas including maritime scientific endeavors and coast guard collaborations.

China's vice foreign minister and his Philippine counterpart have had a "frank and in-depth" exchange on sea-related issues, in particular the issue of the disputed Sabina Shoal, the Chinese foreign ministry said on Wednesday.

Tensions have escalated in the South China Sea after both China and the Philippines accused each other of deliberately ramming ships near the disputed Sabina Shoal. The Philippine Coast Guard claimed a Chinese vessel intentionally struck their ship,