Islamic Abu Sayyaf rebels linked to al-Qaeda have killed at least 11 people on a remote island of the Philippines.

Hundreds of people fled a village on the southern tip of Basilan island when it was invaded by around 70 rebels who peppered houses with automatic gunfire before setting them on fire.

Nearly 20 people were wounded and many children suffered burns when they were caught in the house fires.

The attack came hours after security forces rescued two Chinese nationals held captive for nearly four months by Islamic militants in another part of Basilan.

On Sunday, soldiers killed a senior Abu Sayyaf leader, Albader Parad, and five others in a two-hour fire fight on the nearby island of Jolo.