Australian Warren Rodwell has been released after more than 15 months held hostage in the southern Philippines.

Mr Rodwell was abducted from his home on the island of Mindanao in December 2011 by armed men from the militant Abu Sayyaf group.

It is not clear how Mr Rodwell was released, but it is understood he walked out of the jungle.

The 54-year-old former soldier from Sydney is now in the care of local police and Australia's Deputy Ambassador Andrew Burn.

Foreign Affairs Minister Bob Carr told ABC News 24 the release was "great news".

"I have confirmed he is in a safe place in the company of the number two in our embassy in Manila," he said.

"It's a good outcome but I imagine he will take some time to recover from what was a very unsettling experience to say the least."

Abu Sayaff had demanded a ransom of $US2 million ($1.9 million) for Mr Rodwell's release.

Senator Carr says the Government did not pay a ransom, but hinted that a payment may have been arranged privately.

"Just be clear that the Australian Government never pays ransoms. To do so would leave Australians exposed in all parts of the world to kidnappers who would be motivated by a desire to get money and to get it fast from the Australian Government," he said.

"We don't pay ransoms. But I won't comment on arrangements that may have been made by Mr Rodwell's family and Abu Sayyaf, made through the Philippines anti-kidnapping unit and their police force."

Sorry, this video has expired Bob Carr speaks to ABC News 24

Senator Carr also thanked the Philippines government and local officials for their work in securing Mr Rodwell's release.

"The Philippines police were fully commit and engaged on this. Indeed they've got an anti-kidnapping unit and they worked on this very, very hard," he said.

"I want to thank the Australian people involved from DFAT, from the Federal Police and from the Australian Defence Forces.

What is Abu Sayyaf? A militant Islamist separatist group

A militant Islamist separatist group Established in 1990s and has approximately 350 members

Established in 1990s and has approximately 350 members Known for kidnapping foreigners and Christians, and demanding ransoms for their release

Known for kidnapping foreigners and Christians, and demanding ransoms for their release Four members posed as policemen and broke into Warren Rodwell's home

"It was an enormously difficult task, given the fact that any untimely move ran the risk of Mr Rodwell being killed."

Prime Minister Julia Gillard also paid tribute to authorities in the Philippines and Australia, and welcomed Mr Rodwell's release.

"Mr Rodwell's family have shown a great deal of courage and stoicism in what has been a tremendously difficult situation," she added.

Senator Carr says the Rodwell family has shown "enormous courage" throughout the ordeal.

He says Mr Rodwell's sister Denise is heading to the Philippines tomorrow.

Mr Rodwell's cousin, who only wishes to be identified as Susan, says the family is relieved.

"We're really happy and we're really relieved and we're looking forward to getting him back home to Australia," she said.

"It's been very stressful for everyone involved."

Sorry, this video has expired Former hostage Nigel Brennan discusses the release of Warren Rodwell (pictured)

Mr Rodwell, 54, is reportedly physically well despite his ordeal.

Photojournalist Nigel Brennan, who was held hostage for 462 days after he was kidnapped in Somalia in 2008, says he is happy for Mr Rodwell and his family.

Brennan told ABC News 24 Mr Rodwell may find it hard to overcome his trauma.

"I think he will just be excited to have his life back and his freedom again," he said.

"Every kidnapping is completely different.

"I am sure with Warren being ex-military, he will have kept his head on him [but] he will be going through a myriad of emotions."

Mr Rodwell is yet to speak to the media following his release.

In a video uploaded to YouTube in December last year, he said he had held "no hope at all" for his release.

"I do not trust Abu Sayyaf. I do not trust the Australian Government. I just don't trust anyone. Personally, I don't care," he said in the proof of life video.

The southern Philippines has been a volatile region for decades.

Australia's Department of Foreign Affairs strongly advises Australians to avoid travel there because of the threat of kidnappings and terrorist attacks.