Fathur Rohman al-Ghozi escaped from a Manila prison last month
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Troops in the Philippines have killed three people while pursuing armed rebel groups in the south of the country.
According to a military statement, six soldiers were injured and three gunmen were killed during a battle on the island of Mindanao, where soldiers are fighting several Muslim separatist factions.
A military spokesman said soldiers had clashed with gunmen who they believed were protecting Fathur Rohman al-Ghozi, who escaped from a Manila prison last month.
Al-Ghozi is an Indonesian suspected of involvement in plots by the militant group Jemaah Islamiah (JI) to plant bombs in Singapore and Manila.
He was serving a 17-year prison sentence for illegal possession of explosives and falsifying travel papers.
"There was a running gun battle," said Major General Trifonio Salazar, head of a military task force leading the hunt for the runaway.
"The fighting is ongoing. Scout rangers clashed with gunmen believed to be securing al-Ghozi," Mr Salazar said.
A military spokesman said information on al-Ghozi's
possible whereabouts came from Muslim rebel Abdulmukim Edris.
Edris was detained by the army on Thursday, after soldiers recognised him from a wanted poster.
After his arrest, Edris volunteered to lead the troops to al-Ghozi's hideout, which is thought to be in the area, but was killed before he could do so.