Hoshyar Zebari said he met the Philippines’ special envoy to Iraq earlier in the day and spoke to Bulgaria’s foreign minister on Friday about the unfolding drama.
Zebari also warned governments against bowing to the demands of the kidnappers as this would only fuel the situation.
"It is important for these countries not to show any sign of weakness. Otherwise if they feel this tactic is paying off they will be encouraged," he told AFP in an interview.
The interim minister passed on assurances that the government and Iraqi security forces were hunting hard for clues to resolve the crisis.
When the whereabouts of a hostage were known, the authorities contacted political parties, dignitaries and tribal chiefs in the area, he said.
"We try to find out if there is good will to help to release or secure the release of these nationals," Zebari explained.
"We are following this very carefully," he said.
The comments came as hopes rose that the Filipino hostage, threatened with beheading, was released.
President Arroyo told a relative of kidnapped Angelo de la Cruz that he has been released and is on his way to a Baghdad hotel, according to a report by local television news channel ANC.
But there was no immediate confirmation from Iraqi authorities of the report.
Earlier the spokesman for the influential Sunni Committee of Muslim Scholars told AFP that the hostage may be released soon.
"While we were meeting with an emissary from the Philippine foreign ministry, we received information that he may be released soon," said Sheikh Abdul Salam al-Kubaisi, who has in the past helped in facilitating the release of foreign hostages in Iraq.
De la Cruz’s kidnappers had given the Philippine government until yesterday to withdraw its handful of troops in Iraq or they will behead the 46-year-old truck driver, abducted this week as he drove into Iraq from Saudi Arabia.
At the same time, fear mounted over the fate of two Bulgarians kidnapped on Thursday and threatened with execution by an al-Qaeda-linked group unless US troops freed Iraqi prisoners within 24 hours.
Bulgarian Foreign Minister Solomon Passy told AFP that no contact has been made with the kidnappers, stressing the humanitarian nature of Sofia’s mission in Iraq.
"We are trying to make contact with those who have kidnapped the Bulgarian drivers," he said.
"We need to explain to them the reason for the presence of Bulgarian soldiers on Iraqi soil."
In Washington, US President George W. Bush tried to keep an Iraq ally on board Saturday, receiving assurances that Bulgaria’s troop commitment in the country despite threats by insurgents to behead two of its nationals.
The phone call between Bush and Bulgarian President Georgi Parvanov took place as the Philippines announced it would withdraw its 51-member humanitarian contingent from Iraq as scheduled after its mandate ends on Aug. 20.
In Sofia, Bulgaria said yesterday hopes were increasing that two Bulgarian truck drivers taken hostage in Iraq were still alive as hours passed after a Friday execution deadline expired.
"Today we have more reasons than yesterday to believe that there has been no radical change in the situation of the Bulgarian hostages in Iraq," Gergana Grancharova, foreign ministry spokeswoman, told state radio.
The two Bulgarians, identified by the foreign ministry as Ivaylo Kepov and Georgi Lazov, were kidnapped while traveling to Mosul, but are now believed to be held in Fallujah.
Bulgaria has a 480-member infantry battalion serving in central Iraq, and have already lost six soldiers since December.
The kidnappers of a fourth driver, Sayed Mohammed Sayed al-Garbawi from Egypt, simply wanted money.
Egypt’s outgoing Foreign Minister Ahmed Maher was upbeat about the chances of freeing Garbawi, following the release last month of an earlier Egyptian hostage.
"The Egyptian foreign ministry has been in continuous contact with all the official and non-official people in Iraq as soon as Mr. Garbawi was kidnapped in order to secure his release," Maher said.
The counselor at the Egyptian interest section in Baghdad said he had no news of missing Sayed Mohammed Sayed al-Garbawi.
"We have no news yet about the hostage, but we have contacted Iraqi authorities for their help," Mohammed Kotb told AFP late Saturday.
The hostage takers aimed to intimidate other countries and embarrass the Iraqi government over the country’s insecurity, said Zebari.
"The kidnapping is part of a move to prevent foreigners from contributing to the reconstruction of Iraq," he said, insisting that the tactic has so-far failed as countries that have lost nationals — such as South Korea and the United States — remained committed to the country.
Hostage-taking and a 14-month insurgency prompted the caretaker government to pass a tough security law on Wednesday that arms the premier with a range of powers such as imposing curfews and restricting movement.
Of dozens of foreigners kidnapped since April, some have been released and others killed.
As a result, a senior US trade official said Friday that many American firms are now too scared to enter the country.
"The security concern and the anti-American feeling is preventing US companies from opening offices here," Eric Nigh, vice president of the Iraqi American Chamber of Commerce said.