SOROCABA. Brazil, Dec 31: Brazilian inmates holding up to 650 hostages at a prison near Sao Paulo agreed on Tuesday to free them in exchange for being transferred to other prisons, authorities said, reports Reuter.

The hostages, mostly visiting relatives who had been held since Sunday when 15 inmates took control of the prison, would be released today morning. said Joao Benedito Marques. secretary of the Sao Paulo state penitentiary department.

The negotiations nave been completed, everybody is fine, the men, women, children and the other hostages.' Marques said, referring to 17 prison workers who were also being held.

Twenty inmates at the Soro-caba detention centre. 50 miles (80 kms) west of Sao Paulo, would be transferred to other prisons in Sao Paulo state under the agreement, he said.