Sources said members of the Moro Islamic Liberation Front (MILF) attacked a village near the town of Magsaysay in Lanao del Norte town on Nov. 16.
They burned a house owned by a convert to Islam, and gunned him down when he tried to stop them. Nine other members of the mans household were taken as hostages, the sources said.
The captives were believed taken to a rebel stronghold in a nearby province and the MILF members demanded some P50,000 in ransom.
The incident was kept secret from the local press as authorities negotiated for the captives release. Provincial Gov. Imelda Dimaporo and police officials later secured their freedom without any ransom changing hands, the sources said.
The MILF is the countrys largest Muslim separatist group. It signed a ceasefire pact with Manila last year paving the way for negotiations.
Meanwhile, unidentified gunmen also kidnapped a Filipino-Chinese couple in Lanao del Norte early this week, the military said.
Sonny Chua and his wife Emily were aboard a truck when the suspects waylaid their vehicle and forcibly took them hostage.
"We received the report and police and soldiers were immediately sent to search and rescue the victims," regional Army spokesman Maj. Johnny Macanas told reporters.
He said soldiers had recovered the abandoned truck of the couple, but the fate of the hostages was unknown.
"We still dont know what happened to them. Authorities are closely coordinating with the victims family," Macanas said.