President Gloria Macapagal-Arroyo has called for the arrest of Abu Sayyaf leaders and the rescue of their remaining hostage, Filipino dive master Roland Ullah, who was kidnapped in Malaysia's Sipadan Island resort in April last year.

"The ongoing government offensive will not stop. It will continue relentlessly," said Arroyo in Baguio, northern summer capital, during the presentation of American hostage Jeffrey Schilling who was rescued by a special commando operation in Luuk town, Jolo, southern Philippines, on Thursday.

Emboldened by the success of the military 11 days after she called for an all-out war policy against the extremist and separatist group, Arroyo said to the remaining bandits: "You better surrender or we will pulverise you. The remaining members of the Abu Sayyaf have to be pursued and brought before the bars of justice. They must be exorcised from our midst for they have no rightful place in civil society.

"This should serve as a warning to the enemies of the state that you cannot mess around with the Filipino soldiers, who are sworn to defend and protect our people. "Certainly, the bandits are no match to the fire power and fighting skills of our soldiers. It is clear that our soldiers are superior."

Arroyo was profuse with thanks when she congratulated the military for the rescue of Schilling. Apart from Ullah, the Abu Sayyaf group is still holding Taiwanese trader Steven Chua who was abducted in Bongao town in the nearby Tawi-Tawi province on January 7 and Filipino businesswoman Marilyn Tiu, snatched inside her home in the coastal town of Payao in Zamboanga del Sur province last year.

Ullah is the only remaining hostage from the Abu Sayyaf's kidnapping spree last year in which dozens of foreigners and locals were taken captive in Malaysia and in Jolo from April to July. They were reportedly released after the payment of $20 million by non-government organisations from Libya, Malaysia, and Europe.

"Government soldiers are now searching for Abu Sayyaf spokesman Abu Sabaya who held in custody the American hostage," said Brigadier General Romeo Dominguez, head of the military Task Force Comet which was created to implement Arroyo's all-out war policy against the group on March 4.

Government forces have intensified offensive operations in the Sulu province after Abu Sayyaf guerrillas were spotted near civilian areas, raising speculation that many have disguised themselves to escape pursuing troops, the provincial police chief Candido Casimiro said.

He added that he dispatched "sufficient" police forces in the towns of Luuk and Panamao on Friday after receiving intelligence reports that guerillas have disguised themselves as farmers and were spotted near several remote villages.

"We have deployed forces to check on the presence of rebels who were seen by villagers. They were reported to be moving near several remote villages, but we have someone to identify them," Casimiro said. He did not say how many policemen were sent to Luuk and Panamao towns to pursue the Abu Sayyaf.

"The rebels are on the run because of the ongoing government action against them. If they could hide in their mothers' wombs, they might just to avoid a direct confrontation with government forces," Casimiro said, adding two police armoured vehicles were prepared as a back-up to government forces. Government troops killed a total of 10 Abu Sayyaf since the start of the all out-war policy of Arroyo. Twelve rebels were also arrested.