An American who had been held captive by Abu Sayyaf rebels for nearly eight months was set free yesterday but there was confusion as to whether his freedom came as a result of government negotiations or military action.

Jeffrey Schilling, who was kidnapped last August, is a free man, although many contend he was a willing hostage in the first place. One source told Gulf News Schilling was released following high-level negotiations between local government officials in Jolo and representatives of the Abu Sayyaf group. The source claimed Schilling was handed over by the group but none of the group's infamous leaders was arrested.

However, Brig-Gen Romeo Dominguez, who heads the military task force against the Abu Sayyaf, said Schilling was rescued following a successful military raid on the Abu Sayyaf camp in Luuk town, 55 km southwest of Jolo, at 2.30 p.m.

After two hours of fighting, Schilling was abandoned by his captors, headed by Abu Sayyaf spokesman Abu Sabaya. He was seen walking alone in the mountains of the picturesque town of Luuk, said Dominguez. "Schilling was not wounded. He's safe now. He's in good health. We're giving him medical attention. There were no casualties in the fire-fight," said Dominguez.

Press Secretary Noel Cabrera said in a telephone interview that a two-hour fire-fight took place at noon. "The Abu Sayyaf rebels left their prisoner and escaped on foot," he said. Schilling was taken from Luuk to Jolo's Army headquarters, the Teudolfo Bautista Camp. From Jolo, Schilling will be flown to Baguio, (in the north) early morning today , said Cabrera.

He will be presented to President Gloria Macapagal Arroyo today at a press conference in Bagiuo, northern Luzon's summer capital, according to a presidential source. The U.S. Embassy issued a statement saying they were delighted. They expressed thanks to Arroyo, and praised the "valiant military effort".