"We have received information that all the hostages, including the three Kenyans, three Indians and an Egyptian, were released between 30 minutes and an hour ago," Mwakwere told AFP by telephone.

"They are in safe hands now, and senior Kenyan foreign ministry official, Yusuf Nzibo, is in Kuwait to await their arrival there and receive them," he added.

An Iraqi militant group, calling itself "Holders of the Black Banners", kidnapped Ibrahim Khamis Idd, 48, along with fellow Kenyans Jalal Mohamed Awadh, 39, and Faiz Khamis Salim, 39, as well as three Indians and an Egyptian on July 21.

The kidnappers said the seven -- all truck drivers -- would be beheaded unless their employer, Kuwait and Gulf Link Company, pulled out of Iraq.

The militants are also demanding "payment of damages to families of Fallujah victims and the release of Iraqi detainees from American and Kuwaiti prisons," before the hostages are freed.

The captors named one week ago an Iraqi tribal dignitary, Sheikh Hisham al-Dulaimi, to negotiate on their behalf with the haulage firm, which has also indicated willingness to pull out of Iraq.

Mwakere was unable to say whether the conditions of the kidnappers had been met before their release.

The hostages' threatened execution had been postponed several times before Sunday's release.

Meanwhile, a self-styled Iraqi tribal mediator and diplomatic sources in Baghdad said they could not confirm reports that seven foreign truckers being held hostage by Islamic militants had been released.

"I know nothing about it. This is all news to me," go-between Sheikh Hisham al-Dulaimi told AFP.

The hostages, three Indians, three Kenyans and an Egyptian, all working for a Kuwaiti haulage firm, were snatched on July 21 by the previously unknown Islamic Secret Army - Holders of the Black Banners group.

"So far there have been no positive results. The Kuwaiti company is not responding to us. They have agreed to pull out of Iraq but they are still arguing about the compensation," Dulaimi said, referring to the kidnappers' demands.

Diplomatic sources also said talks were still underway.

"We are unaware of the release of the hostages and negotiations are still on as far as we know," one of them said on condition of anonymity.

In Nairobi, Kenyan Foreign Minister Chirau Ali Mwakwere said the seven hostages had been released.

"We have received information that all the hostages, including the three Kenyans, three Indians and an Egyptian, were released between 30 minutes and an hour ago," Mwakwere told AFP by telephone.