The government has turned down the reported offer of Libyan leader Muammar Gaddafi's son to negotiate for the release of two American missionaries and a Filipino nurse, a senior official said. Martin and Gracia Burnham and Deborah Yap are being held by the Abu Sayyaf in Basilan, southern Philippines.

"The military can handle the hostage crisis in Basilan. The joint U.S.-Philippine war games in Zamboanga City and Basilan Island will address the hostage problem," said Eduardo Ermita, presidential adviser for the peace process.

"The Libyan government knows that there is an ongoing U.S.-Philippine joint exercise here. That is why the military is very confident that there is no need for the intercession of other parties."

Armed Forces Chief of Staff Gen. Diomedio Villanueva said: "The military will pursue with rescue operations rather than negotiate with the Abu Sayyaf."

The military has been accused of not being able to curb the Abu Sayyaf which is based in Basilan, Jolo and Tawi-Tawi in the southern tip of Mindanao.

Villanueva reiterated the government's stand of no negotiation, no ransom.

Villanueva expressed doubts on the reported plan of Abu Sayyaf leader Isnilon Hapilon to release the hostages who were placed under his custody. Hapilon reportedly plans to surrender because he is ill, exhausted and there is a lack of food. The situation will get worse with the sustained military operations.

Abu Sayyaf leader Abu Sabaya reportedly escaped to Jolo and left his hostages in Basilan last month.

Sabaya was reportedly forced to give the hostages to Hapilon after he was abandoned by most of his men at the height of the military operations.

The reports could be a ploy to ease military operations, said Villanueva, adding, "But we will wait. If they're true to their word, they must first release the hostages unharmed."

There have been reports of Abu Sayyaf members wanting to surrender in the past several months, but until now none of them has surfaced, said Villanueva.

Villanueva said the rebels have no option but to surrender because they are running out of food and ammunition.

"They have no way to go. Our troops have surrounded them and their hideouts in Basilan have been pin-pointed," Villanueva said.