Manila  - Kidnappers on Thursday freed two of seven abducted employees of the Environment and Natural Resources Department in the southern Philippines, a military spokesman said.

The two hostages were turned over to negotiators at the boundary of Kolambugan and Sibagat towns in Lanao del Norte province, 810 kilometres south of Manila, Lieutenant Colonel Romeo Brawner said.

The release occurred after the kidnappers, who were suspected to be communist rebels, issued a list of demands that did not include ransom.

"The negotiators are confident that this will be resolved peacefully by Sunday," Brawner said.

The victims were abducted Wednesday while manning an environmental checkpoint in a forest area in nearby Butuan City.

Earlier Thursday, the kidnappers demanded the cancellation of a community-based forest management agreement in Sibagat, the awarding of titles for ancestral domain land and the approval of customary farm practices.

Chief Superintendent Lino Calingasan, a regional police commander, said the negotiations for the release of the hostages were being conducted by local church leaders, environmental officials and tribal leaders.

"The church leaders have requested both the police and the military not to conduct operations as negotiations are ongoing," he said.

Communist rebels have been fighting the Philippine government since the late 1960s, making the movement one of the longest-running leftist insurgencies in Asia.(dpa)