In what is being described as the final stages of negotiations, the Kuwaiti company employing the three Indian hostages and the Iraqi negotiator for the abductors spoke over telephone on Thursday.

According to the Indian embassy in Kuwait, the Kuwait and Gulf Transport Company and Sheikh Hisham al-Dulaimi were expected to have face-to-face meeting on Friday, Minister of State for External Affairs E Ahamed said after a meeting of the Crisis Management Group in New Delhi.

"I am given to understand that they had contacts over telephone today," he said.

The direct meeting was earlier slated to take place on Thursday. There was no official word why it was deferred.

Asked about reports that KGL and Dulaimi had struck a deal and the hostages might be released on Saturday, he said, "Many reports are appearing. I can say something only after official confirmation. I don't have any authentic confirmation on this."

Antaryami, Tilak Raj and Sukhdeo Singh, all plying trucks for KGL, were abducted in Iraq on July 21.

The militant group, which abducted the three Indians along with three Kenyans and an Egyptian, had asked KGL to withdraw from Iraq and pay compensation to victims of US attacks in Fallujah.