President Gloria Macapagal Arroyo called the family of a Filipino truck driver held by militants in Iraq to say he was being brought to a hotel in Baghdad today.
Asked by a televsion reporter if this was a positive development for the release of Mr Angelo de la Cruz, labour secretary Ms Patricia Santo Tomas said: "Yes."
His captives had demanded Manila withdraw its troops from Iraq.
Filipino hostage, Mr Angelo de la Cruz
Earlier, Mr de la Cruz issued a "final appeal" to President Arroyo to withdraw troops from Iraq before a deadline for his execution, in a videotape aired on Arabic television station Al Jazeera.
"To my colleagues in the Saudi company and all Filipinos heading to Iraq, I advise you not to come to Iraq because of the many problems and because the Iraqi police cannot protect you, as happened with me," said Mr de la Cruz.
"To my family in the Philippines and President Arroyo, I beg you to withdraw the troops from Iraq," Mr de la Cruz, wearing an orange jumpsuit, said in what Al Jazeera called a final appeal. His comments were translated into Arabic.
Militants had abducted Mr de la Cruz (46), near the Iraqi town of Falluja as he drove a truck carrying crude oil supplies from Saudi Arabia.