The Philippine government caved in to the demands of the mujahideen and agreed to withdraw personnel from Iraq, in exchange for the release of a Filipino hostage.

Now the holy warriors want to see how high they can make President Gloria Macapagal Arroyo jump: Manila Cancels Briefing as Fate of Hostage Unclear.

MANILA (Reuters) - The Philippine government canceled a planned news conference on the release of a Filipino truck driver held hostage in Iraq on Sunday after his captors issued a new deadline for his execution.

Government officials in Manila had earlier said Angelo de la Cruz was being taken to a hotel in Baghdad and could be released within hours, prompting celebrations among family and friends.

But Arabic satellite television Al Jazeera reported that the militants holding him said they would behead him if Manila did not withdraw troops from Iraq by July 20, exactly one month ahead of its planned withdrawal.

“The hostage will remain captive and treated as a prisoner under Islam until the last Filipino soldier leaves Iraq July 20 at the latest … or he will be executed,” the channel quoted a statement from the group as saying.

“We give the Philippine government an additional 24 hours starting from 11 p.m. Iraqi time (1500 GMT) on Saturday to show it is serious about withdrawing its troops.”