The Philippines and China both lay claim to the Scarborough Shoal. PHOTO: AFP

The Department of Foreign Affairs (DFA) said the Chinese military's claim that a Philippine military ship "illegally entered" waters near the Scarborough Shoal "has no legal basis and only serves to raise tensions" in the disputed waterway.

"It is China that is intruding into Philippine waters," the foreign ministry said in a statement, said the Reuters.

The Philippines and China both lay claim to the Scarborough Shoal, but sovereignty has never been established, and it remains effectively under Beijing's control since it seized it from Manila in 2012.

The DFA said the shoal, which it calls "Bajo de Masinloc" is within the Philippines' exclusive economic zone and the country has sovereign rights and jurisdiction over it.

"The Philippines has consistently demanded that Chinese vessels in Bajo de Masinloc leave the area immediately," the foreign ministry said.

The shoal, located 200km off the Philippines, was part of an arbitration claim filed by Manila at an international tribunal. The court ruled in 2016 that Beijing's claim to 90 per cent of the South China Sea had no basis under international law, but China has refused to recognise the ruling.