Some 50 members of the Abu Sayyaf Muslim kidnap gang, backed by renegade members of the Moro National Liberation Front (MNLF), attacked a military outpost near the town of Indanan on Monday, triggering a fierce gunbattle, regional Army chief Maj. Gen. Glicerio Sua said.
One soldier and a rebel were killed in the fighting, while another soldier was wounded and airlifted to a military hospital, Sua said.
"There is a pursuit operation. Troops are running after the terrorists and there will be no letup in the offensive against the Abu Sayyaf," Sua said.
Two MG-520 attack helicopters fired rockets into suspected rebel positions near Indanan on Tuesday, but it was not immediately known if there were additional casualties, he said.
The Abu Sayyaf is a small group of self-styled Islamic fighters who are more notorious for their deadly kidnapping raids in the south.
The group has been branded a terrorist organization by both Manila and Washington, which have linked it to Osama bin Laden’s al-Qaeda network.