Philippine officials said troops would leave the country soon in an atttempt to save the life of a Filipino hostage in Iraq but did not give a specific date.
The Philippine army said it was ready to pull out of Iraq pending a formal order to do so after deputy foreign minister Mr Rafael Seguis offered on television to withdraw Philippine forces "as soon as possible".
Mr Seguis troops would leave Iraq "swiftly, in the time it takes to carry out the necessary preparation for their return to the Philippines. I hope the statement that I read will touch the heart of this group."
The Islamic Army in Iraq group, which is threatening to behead truck driver Mr Angelo de la Cruz (46), wants a withdrawal by July 20th in exchange for his freedom.
It is not clear if any pullout would be earlier than the August 20th date Manila had previously set for the withdrawal of its 50 troops that was set well before the hostage crisis.
Militants have seized dozens of foreigners since April to press demands for foreign troops to leave. Many hostages have been freed but at least three have been killed.
Spain withdrew its troops from Iraq after suspected al Qaeda-linked militants attacked packed Madrid commuter trains in March, killing 191 people, in what they said was revenge for Spanish involvement with US-led forces.
Honduras and the Dominican Republic later cut short their force's stay in Iraq.