Marawi (Philippines) - The Philippines ruled out negotiations on Tuesday with Islamist militants holding hostages and occupying a southern town, after reports that a rebel leader wanted to trade a Catholic priest for his parents being held by police. Presidential spokesman Ernesto Abella said there would be no deals with the Maute group militants holed up in Marawi City because that was against government policy, and anyone trying to bargain had no authority to do so. The Philippine Daily Inquirer reported that Abdullah Maute, one of two brothers who formed the militant group carrying their name, had told religious emissaries on Sunday that he wanted his mother and father freed in return for Father Teresito "Chito" Soganub, vicar general of Marawi. The authorities believe Soganub and more than 100 other Christians are being held by the ISIS -linked (Daesh) insurgents as human shields. "The government policy not to negotiate with terrorists remains, hence the local religious leader-led talks with terrorists last Sunday was one not sanctioned by government, the military and our political leaders," Abella told reporters. "Any demands made inside, therefore, hold no basis. Let us remind the public, the gravity of the terrorists and their supporters' offences is immense and they must be held accountable for all of their actions." Taking advantage of a short truce on Sunday to mark the Eid Al-Fitr holiday, eight Muslim leaders entered the conflict zone alongside rescue teams and met briefly with Maute, whom the military a day earlier said had fled the battle.