At least 26 other soldiers were wounded in the clash in Sulu province's mountainous Talipao town, army Col Allan Arrojado said. The fighting eased by nightfall and government forces were pursuing about 300 militants, who split into smaller groups and withdrew, he said.
He described it as "a major encounter," and added in a text message: "We are tracking their whereabouts."
A military officer involved in today's fighting said another soldier was missing and the wounded troops were to be airlifted to a military hospital. He spoke on condition of anonymity because he was not authorised to talk to reporters about the ongoing operation.
President Benigno Aquino III has ordered the military to crack down on the militants after they freed two German tourists on Oct 17 reportedly after a huge ransom payment. It led to concerns that the money could be used by the resilient Abu Sayyaf to acquire more weapons.
The militants are holding several other hostages in Sulu's dense jungles, including two European birdwatchers, who were seized more than two years ago, and a Malaysian police officer, who was recently abducted in Malaysia's Sabah state on Borneo Island, which is a few hours away by speedboat from Sulu.
The extremist group has had links to the al-Qaida terrorist network and is on a US list of terrorist organisations for deadly bombings, kidnappings and beheadings.
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