A top Filipino terrorist leader linked to al-Qaeda and listed as one of the United States' most wanted was arrested by Philippine police forces on Wednesday.

Khair Mundos was arrested in Paranaque city, Manila, near the country's international airport, where he was temporarily staying with relatives to escape pursuit in Mindanao, Manila criminal investigation chief Senior Superintendent Roberto Fajardo said.

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In 2004, Mundos was captured but escaped from Kidapawan city prison 3 years after with the help of Muslim insurgents. He had confessed to officials that he had acted as "financier" for the Abu Sayyaf group where he had sourced funds from the al-Qaeda to fund their operations in the Philippines. He is also believed to have ties with Indonesian militant group Jemaah Islamiah.

The U.S. has him in its Most Wanted list and posted a $500,000 reward for his capture in 2009. In the Philippines, a P5 million reward, roughly $114,400, was also posted for his re-capture when he escaped from prison in 2007.

Philippine head of military intelligence Major General Eduardo Ano said Mundos' capture on Wednesday is a blow to the Abu Sayyaf where he served as top commander, combat trainer, strategist and spiritual leader of the group based in the southern Basilan region, AP has learned.

"Those people lost one of their leaders...and they will be feeling insecure," Ano said.

Philippines head of criminal investigation Benjamin Magalong said the arrest had been the result of about two months of surveillance work.

An unnamed senior police officer told reporters that Mundos had not resisted arrest. Police were able seize four guns and a number of training manuals used by Jemaah Islamiah, a militant group in Indonesia.

Police said the Abu Sayyaf are currently holding three kidnap victims from China, two from Germany, one from Japan, one from the Netherlands and one Swiss national.

TagsKidapawan, Mindanao, Roberto Fajardo, bombing, kidnap, Jemaah Islamiah, Eduardo Ano, Benjamin Magalong, wanted, most wanted list, Basilan, Philippines news, World News, militant group, Terrorist group