The Malaysian Government says there was no deal struck for the release of a Malaysian hostage being held in the southern Philippines.

Foreign minister, Syed Hamid Albar, described the release of Zulkarnain Hashim, a forest ranger, as a goodwill gesture.

In the past, the Malaysian Government has suggested a ransom might be the only way out of the crisis.

He is the first captive to be released by the Islamic group Abu Sayyaf who had been holding 21 mainly Western hostages on the island of Jolo for two months.

Appearing at a news conference in Manila, Mr Hashim looked fit and well, despite suffering a scorpion sting during his captivity.

The remaining hostages are from Malaysia, Germany, France, South Africa, Finland, the Philippines and Lebanon.

Earlier, Robert Aventajado, the Philippine Government's chief negotiator, said no ransom had been paid.

Abu Sayyaf has reportedly demanded up to $21m to free all the hostages.

The Philippine Government, which has a 'no ransom' policy, said it has not received any formal demand and would not pay anyway.

The rebels are fighting for an independent Islamic state in the predominantly Catholic Philippines.

The hostages were snatched from a Malaysian diving resort on 23 April and taken to Jolo by boat.

One of the German hostages, Renate Wallert, is suffering from a heart condition.

Frenchman Stephane Loisy, suffering from psychological distress, is also said to be in a deteriorating state.

The freed hostage is said to have been taken to the Philippine capital, Manila.

His release is the first breakthrough in weeks of negotiations.