The Abu Sayyaf group aborted the planned release of two Filipinos out of more than 20 hostages they are holding on Basilan island in the southern Philippines over the presence of troops near the area where the rebels had planned to release 15-year-old Lalaine Chua and Luis Bautista, 32.

The rebels announced they will hold onto the pair and called for a military pull-out from Basilan to pave the way for the release of Chua and Bautista. The two were abducted with 18 others from Dos Palmas resort in Palawan, southwestern Philippines on May 25.

An informant with direct communication with Abu Sayyaf spokesman Abu Sabaya said the two captives were still in the group's hands. "They want the military to stay away from the release site, even just temporarily, so that Chua and Bautista could be turned-over to their families and the government," said the informant who requested anonymity.

"They said (they'd release the two hostages) anytime, as long as the government could assure that the area (where the exchange would be done) was safe and sound," the source said.

Sabaya expressed fears the hostages might be caught in the crossfire if they were abruptly released, said the informant. "The only problem is the security of the hostages. They (Abu Sayyaf) want to safely turn over the hostages to their families. All reports of releases since last week are nothing but speculation," the informant quoted Sabaya as saying.

The source said there was no truth to intelligence reports that the two hostages were already in the custody of the Moro Islamic Liberation Front (MILF) under Commander Lijal who reportedly accosted the two hostages as they were trekking to freedom last week.

Meanwhile, MILF spokesman Eid Kabalu denied knowing "Commander Lijal", but added he has heard of such a "commander". Kabalu said the MILF had never been a hindrance to the military. He also added it is difficult to tell the MILF ground forces to leave Basilan because they are natives of the place.

Eduardo Ermita, Presidential Adviser to the Peace Process, earlier asked the MILF hierarchy to pull out their troops in Basilan so that military operations in the area could be more effective.

"There is no reason for the resident MILF to leave Basilan. Where would they go?" asked Kabalu, but added that arrangements in this regard could be made. "If the government is serious in its proposal, it should pass it through proper channels," Kabalu said, adding that the government and MILF peace panels should be included in this kind of arrangement.

At the same time, Kabalu predicted the military would fail in its offensive against the Abu Sayyaf in Basilan because it lacked the support of the community.

He said the MILF was being used as a scapegoat for the military's failure. "We look at the situation as a preemptive move because we feel that the military will fail in this effort against the Abu Sayyaf because they lack the support of the community. So they are trying to pre-empt the situation in such a way that the MILF forces will be used as a cover-up in case they fail in their operation against the Abu Sayyaf," Kabalu said.