Banda Aceh – The military shot dead two separatist rebels and a government soldier died in a hostage crisis in restive Aceh province, the military and witnesses said on Saturday.

The two Free Aceh Movement (GAM) rebels were among fourguerrillas who "accidentally" went inside a house of a local police chief in North Aceh's Seunuddon while trying to escape from a military ambush on Friday afternoon, said Lt. Col. Asep Sapari, an Aceh military spokesman.

"Seven people living in the house were taken hostage overnight before troops killed two of the insurgents in two raids on Friday night and Saturday morning," said a local journalist at the scene.

The other two guerrillas managed to escape but one of them was believed to be wounded, the journalist said, adding all seven hostages were left unharmed.

Sapari confirmed both deaths and said the rebels shot dead a soldier and wounded three others.

Officials from GAM, which has been fighting since 1976 for independence for the province on the northern tip of Sumatra island, could not be immediately reached for confirmation.

The military claims to have killed more than 1,300 rebels since it began an offensive against the rebels last May. Around 2,000 guerrillas and their sympathizers have been arrested or have surrendered, it said.