New Jolo hostage plan

Some hostages have been held for four months

The Philippines and Libya have approved a new deal they hope will persuade rebels to release 28 hostages.

A Philippine Government emissary is expected to deliver the scheme to the Abu Sayyaf gunmen by Friday.

The rebels are holding the hostages on the southern Philippine island of Jolo.

Three Malaysian hostages were freed last week

Many of the captives were kidnapped from a Malaysian diving resort four months ago.

The Abu Sayyaf, a separatist Muslim group, had promised to free them at the weekend, but reneged at the last minute.

Precise details of the amended deal are being kept under wraps.

But it appears the government may be willing to let the gunmen free their captives in batches as they had earlier wanted.

Philippine President Joseph Estrada had previously inisted on an "all-or-nothing" policy concerning the release of the hostages.

But the rebels apparently fear a military attack if they free everyone together.

Aid

Libya has been invoved in negotiations with the rebels from early on in the hostage crisis.

A foundation headed by a son of Libyan leader Colonel Muammar Gaddafi has offered "development aid" to the impoverished region in exchange for the hostages.

Unconfirmed Philippine media reports have suggested the package is worth $25m.

The latest agreement follows talks between the Philippine Government's senior envoy Roberto Aventajado and his Libyan counterpart Rajab Azzarouq.

Releases

The Abu Sayyaf is the smaller of two rebel groups fighting for an Islamic state in the predominanty Catholic Philippines.

The crisis started with the abduction of 21 tourists and staff at the Malaysian resort of Sipadan on 23 April.

Several journalists and a number of Filipino missionaries have since been kidnapped as well.

The gunmen have released one German, a Filipina and nine Malaysians from the Sidapan group as well as a number of hostages from other kidnappings.

Officials have estimated the rebels have received $5.5m in ransoms.

Those remaining in captivity include two Germans, five French, two Finns, two South Africans, a Franco-Lebanese woman and 16 Filipinos.

Manila and foreign governments whose nationals are held captive say they oppose paying ransom.