Beijing and Manila have agreed to continue talks on settling their territorial differences despite Philippine protests about the presence of a Chinese "monster ship" near the contested Scarborough Shoal.

A Philippine security official says China is “pushing us to the wall” with growing aggression in the disputed South China Sea and warned that “all options are on the table” for Manila’s response, including new international lawsuits.

The Philippine Coast Guard on Wednesday said that China's "monster ship" deployed off Zambales in Luzon was so far Beijing's closest vessel yet to the Philippine coastline.

Growing tensions between China and the Philippines in the disputed Scarborough Shoal in the South China Sea are reaching a boiling point, Manila officials say.