MANILA - AL-QAEDA-linked extremists threatened on Wednesday to behead one of their three Red Cross hostages if the Philippine military engages them in battle again, an official said.

Sen Richard Gordon, who heads the Philippine Red Cross, said he spoke with Abu Sayyaf commander Albader Parad by mobile phone on Tuesday and Wednesday.

He was told that the hostages were unharmed after two days of fierce jungle clashes that killed three marines and up to seven Abu Sayyaf members.

But Mr Gordon quoted Parad as saying a hostage would be killed if another gunfight breaks out.

The Italian, Swiss and Filipino aid workers, their hands tied, were seen running with their captors toward a mountain after the militants fought with marines near Indanan township on southern Jolo Island, police Chief Superintendent Bensali Jabarani said. -- AP