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GENEVA, Monday (AFP) The Indonesian government and separatist Aceh rebels are expected on Monday to sign a peace deal, ending one of Southeast Asia's bloodiest conflicts.

Representatives from the separatist Free Aceh Movement (GAM) and the Indonesian government will sign a "cessation of hostilities" agreement at the Geneva-based Henry Dunant Centre for Humanitarian Dialogue which has been working to bring peace to the region since January 2000.

The peace deal is hoped to end the 26-year war in the Indonesian gas- and oil-rich province, which has claimed at least 10,000 lives.

Human rights workers say more than 1,200 people have died in Aceh this year alone -- an average of more than three every day. Many disappear and later turn up dead with gunshot wounds or torture marks beside a road or floating in a river.

Ceasefires broke down over the past two years, with each side accusing the other of bad faith.

But since February, the two parties held intensive talks which resulted in a breakthrough in May when both sides agreed in principle to hold elections in 2004 as part of an overall peace plan.

The GAM also agreed to accept the government's autonomy package -- already in effect -- as a starting point for talks. The rebels insist they have not dropped their independence demand.

In a key concession, the government has agreed to allow foreign monitors to join GAM and government representatives who will monitor a truce and impose sanctions.

Peace in Aceh would be a significant achievement for the government of President Megawati Sukarnoputri, which is fighting numerous other battles including a long-running economic crisis and the threat of terrorism.

Aceh, at the northern tip of Sumatra island, emerged as a sovereign state in the 16th century. For many years it was an influential political and economic entity and a centre for Islamic learning

The Dutch invaded in the late 19th century but took 30 years to subdue the Acehnese.

Recent separatist sentiment is rooted in widespread resentment of Jakarta for its exploitation of Aceh's oil and gas wealth, a history of human rights abuses by security forces, and decades of perceived broken promises to respect Aceh's distinct and proud culture. 

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