New threat to kill Iraq hostage

Mr Cruz's family in the Philippines were told he had been released

Militants have issued a new threat to kill a Filipino hostage unless Manila shows clear intent to withdraw troops from Iraq, al-Jazeera has reported.

Their statement, issued to the Arabic TV network, came amid confusion over the whereabouts of the Filipino man.

The Philippine authorities had said he had been freed, but the government later said there had been no handover.

Manila has announced plans to withdraw troops from Iraq, but denies it is giving in to the threat.

Meanwhile, Bulgaria has said it believes two Bulgarian truck drivers taken hostage in Iraq are still alive, a day after an execution deadline expired.

The foreign ministry said Bulgarian diplomats had been sent to Iraq to try to free the men.

Ultimatum

The Filipino hostage, 46-year-old Angelo de la Cruz, was working as a truck driver for a Saudi Arabian firm.

In its statement, a group calling itself the Islamic Army in Iraq threatened to behead him if Manila did not agree within 24 hours to withdraw its troops by 20 July.

Angelo de la Cruz has urged the government to withdraw troops

"We give the Philippine government an additional 24 hours starting from 2300 Iraqi time (1900GMT) on Saturday to show it is serious about withdrawing its troops," the statement said.

"If we learn from the media that the Philippine government clearly intends to do so, the hostage will not be slaughtered and will be treated as a prisoner under Islam until the last Filipino soldier leaves Iraq 20 July at the latest and the hostage will be returned safely to his country."

On Saturday, reports from Manila said Mr de la Cruz had been freed and was on his way to a Baghdad hotel.

The BBC's Peter Greste in Baghdad the episode illustrates the dangers of declaring hostages free before they physically turn up.

'Propaganda blow'

The Philippine government said on Saturday that it was already planning to bring home its 51-strong military contingent in August when its one-year mandate expired.

The government had previously said it was considering extending the mandate. But officials on Saturday insisted there had been no change in policy and said the government would not give in to militants' demands.

However, our correspondent says the timing of the government announcement on the withdrawal of its forces could be regarded as a propaganda blow for the US-led military presence in Iraq.

The announcement came hours after Mr de la Cruz urged his government to withdraw troops, in a video broadcast by al-Jazeera.

The planned withdrawal of the small contingent of Filipino troops is not seen as a major blow to the US-led military presence in Iraq.

But there are thousands of Filipino civilians working in Iraq to help rebuild its infrastructure. In response to the kidnapping, Philippine President Gloria Arroyo has banned any more civilians from going to Iraq.