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Edition: U.S. Article Comments (0) Save Email Print Reprints Most Popular Most Shared Exclusive: IRS hires "hundreds" for new wealth unit 11 Dec 2009 Woods wins UK court ban against nude, sex photos 11 Dec 2009 Governor Sanford's wife files for divorce 11 Dec 2009 Iraq aims to power out of war into oil big league | Video 9:36am EST Woods's break to fuel high-stakes guessing game 12:34am EST Exclusive: IRS hires "hundreds" for new wealth unit 11 Dec 2009 Iraq aims to power out of war into oil big league | Video 9:36am EST US debt limit to rise by $1.8 to 1.9 trillion -Hoyer 11 Dec 2009 U.S. agency sees more health spending with reform 11 Dec 2009 Woods wins UK court ban against nude, sex photos 11 Dec 2009 Philippines hostages likely to be freed soon: government Michaela Cabrera PROSPERIDAD, Philippines Sat Dec 12, 2009 8:22am EST Related News Philippines says to lift martial law in south 7:17am EST Philippine hostage crisis close to end: government 7:15am EST Gunmen free nine of 57 hostages in Philippines Fri, Dec 11 2009 Gunmen hold 57 hostages in Philippines Thu, Dec 10 2009 Philippines charges massacre suspect with murder Thu, Nov 26 2009 PROSPERIDAD, Philippines (Reuters) - Tribal gunmen holding 46 hostages in the southern Philippines have reached an agreement with negotiators and will free all those in captivity, a government spokesman said on Saturday. World Alfredo Plaza, a spokesman for the Agusal del Sur provincial government, said the hostages would be freed at 7 a.m. Sunday (6 p.m. EST Saturday) and the gunmen would surrender. "They have agreed," Plaza told reporters. "We are relieved this was resolved in a peaceful way." Negotiators held discussions with the gunmen through the day on Saturday, officials had earlier said. It was not immediately known what they will get in return for freeing the hostages. The gunmen took 75 people hostage from an elementary school and nearby homes in the lawless Mindanao region on Thursday, less than three weeks after a massacre in a nearby province, throwing an unwelcome spotlight on the Southeast Asian nation ahead of a presidential election next year. The abductors have already freed 29 of the hostages. Police have surrounded the area where the hostages are being held, in Agusan del Sur province, but said they were giving negotiations a chance. "We are optimistic that we can resolve this through negotiation," Senior Superintendent Nestor Fajura, operations chief of the regional police office, said on Saturday. "There is no threat on the lives of the hostages, they were fed and they freed one sick hostage," he told local radio. "Our channels of communications are open." The Mindanao region is full of bandits, communist guerrillas and Islamic rebels. Powerful local families maintain large private armies and feuding among them is common. Last month, 57 people, including 30 journalists, were killed after they were stopped at a checkpoint in Maguindanao province, also in the southern Philippines, while on their way to file a candidate's nomination for elections next year. The killings led to the imposition of martial law in Maguindanao last week, but it is set to be withdrawn at 9 p.m. (2100 GMT) on Saturday. Negotiators had previously said the hostage-takers had demanded that murder cases against them be dropped. They have also asked police to disarm rivals from the same tribe, with whom they are feuding. Clan wars, known locally as "rido," are common in the south. Studies funded by the Asia Foundation and the U.S. Agency for International Development in 2007 found there had been more than 1,200 clan feuds in the south since the 1930s, killing nearly 5,000 people and displacing tens of thousands. (Additional reporting by Manny Mogato; Editing by Raju Gopalakrishnan and Alex Richardson) World Add a Comment More from Reuters Obama argues for strong financial watchdog agency WASHINGTON (Reuters) - President Barack Obama defended on Saturday a consumer watchdog agency the financial industry wants to weaken or strip from legislation that would strengthen the regulation of Wall Street. Iraq aims to power out of war into oil big league | Video U.S. froze $2 billion held for Iran in Citibank: report Worldwide rallies urge strong U.N. climate deal Pay czar caps more salaries at bailed out firms Iran needs up to 15 nuclear plants: foreign minister » More Top News Money & Spending: Bargain basement bashes Corporate America is channeling Ebenezer Scrooge for a second year, saying Bah Humbug! to lavish holiday parties as fears of a double-dip recession loom. Full Article Jolly season for Aussie office parties Era of greed drawing to end Lifestyle Pictures that defined a decade Heavy fog obscuring the Dubai skyline and a singed shoe after the Bali bombings are among the indelible Reuters images of the last 10 years. Slideshow Fifth selection in the series Do you agree with our choices? 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