Military officials said at least five gunmen, two soldiers and a policeman had died in the ongoing gunbattle in a village in the coastal town of Inabanga in Bohol province.
The island province is known for its beach resorts and wildlife and lies near Cebu province, a regional commercial and tourism center.
Government forces seized control of two of the houses, and the rest of the gunmen either were in the third house or had fled the area, dela Rosa told reporters.
If it is proven that the gunmen were from the Abu Sayyaf, it may be the group's first known attempt to carry out ransom kidnappings deep in the heartland of the central Philippines, far from its jungle lairs in the southern provinces of Sulu and Basilan.
Abu Sayyaf militants have crossed the sea border with Malaysia on powerful speedboats and kidnapped scores of foreign tourists in the past.
"If we were not able to monitor this and engage them with our government forces, it's a cause for alarm if they were able to carry out kidnappings," dela Rosa said.
Military chief of staff Gen. Eduardo Ano told The Associated Press that military intelligence operatives had been trying to track down the movements of the suspected militants, who first traveled from Sulu to southern Zamboanga peninsula.
The gunmen traveled on board motor boats along a river to Inabanga's Napo village, where government forces assaulted them, military spokesman Col. Edgard Arevalo said, adding that troops recovered four rifles and a homemade bomb from the slain gunmen.
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