Militants freed a Filipino truck driver after the Philippines government gave in to their demands to withdraw troops from Iraq to prevent the beheading of the 46-year-old father of eight who had been held captive for two weeks.

A decapitated body in an orange jumpsuit was discovered in the Tigris River north of Baghdad, the US military said today.

Bulgaria and the Philippines insisted today they would not be cowed by terrorists after insurgents captured and threatened to kill their nationals in Iraq, the latest hostage takings in the country.

Britain is expected to immediately resume issuing business visas for Bulgarians, the state news agency BTA reported today.