Two soldiers were wounded when fighting broke out yesterday between local troops and the Abu Sayyaf Muslim guerillas in the southern Philippines just after U.S. commandos arrived in a rebel stronghold even as Philippine troops rescued two farmers seized by the Abu Sayyaf on southern Basilan Island.

The battleground was about seven kilometres away from the camp of the U.S. commandos who had been arriving here in batches since Sunday.

U.S. forces were not involved in the clashes when a Navy patrol encountered suspected rebels at 7.30 yesterday morning on Tingulan island, several nautical miles west of Basilan's Maluso town.

The incident occurred close to the base of the Abu Sayyaf Group, which has kidnapped Filipina nurse, Deborah Yap, and U.S. missionaries, Martin and Gracia Burnham. "Many gunmen were killed in the rocket attacks coming from the government forces," said regional military spokesman, Maj. Noel Detoyato.

"The two soldiers who were wounded in the clash belong to the Special Warfare Assault Group (Swag)," noted Maj. Detoyato. He added that clash began when the government troops thought they had come across some members of the Abu Sayyaf Group.

Detoyato said the suspected gunmen were Abu Sayyaf fighters and renegade members of the Moro National Liberation Front (MNLF ) who are loyal to imprisoned MNLF chairman, Nur Misuari. The clash erupted near where American forces, who are participating in the joint Philippine-U.S. war games, have established camps.

Maj. Detoyato said fishermen tipped off the military about the presence of heavily-armed men on the uninhabited island near Maluso, a known lair of the Abu Sayyaf and the MNLF renegade faction. Both reportedly formed an alliance last year.

Government soldiers could not recover the bodies of the slain rebels because of the fighting, added Maj. Detoyato.

Meanwhile the Abu Sayyaf abandoned farmers Dani and Latip Kasim after government troops stormed an Abu Sayyaf encampment near the Maligue flood spillway, on the outskirts of the capital Isabela City, said Basilan Army commander, Col. Alexander Aleo.

"The soldiers pursued the Abu Sayyaf rebels who fled apparently in confusion when their camp was besieged by government soldiers. The rebels left behind their captives when soldiers caught up with the former outside Isabela," Col. Aleo said.

Danny Latip's wife reported to the military the $1,949 ransom demand of the Abu Sayyaf Group. She said she was given a deadline to raise the amount on Monday.

A dozen guerrillas, led by Kalaw Jawjali, abducted the brothers from the remote farming village of Upper Kapayawan, about 16 kilometres from downtown Isabela, last Sunday.