Minister for CHT Affairs Kalparanjan Chakma said last night he was informed that the abductors would release the three hostages on Monday.
"We have succeeded in contacting the abductors and as per our information, the hostages are in reasonable health,'' he said.
A messenger met him at around 8 last night and gave the information, the minister added.
When contacted, a top official at the Crisis Centre set up at the local Circuit House declined to comment on the minister's statement.
The authorities had earlier issued an ultimatum to the abductors of three foreign consultants --Torben Mikkelsen, Nils Hulgaard and Tim selby--
to release them by Sunday morning or face a massive military offensive. Kalparanjan gave the ultimatum at a meeting at Betchhari army camp Thursday afternoon.
Meanwhile, people in Kalapahar area were seen fleeing their villages yesterday, fearing army action to release the hostages.
Scores of men and women with children and some belongings were seen leaving the 'red zone" for safer places. They apprehended that clashes might break out on expiry of the deadline if the hostages were not freed, they told newsmen.
Some village heads at Bethchhari said people of Puranpara, Tripurachhari and Kengachhari in Bethchhari area have also stepped up their efforts to locate the abductors and the hostages.
Many villagers sent their families to safer places following the ultimatum, they said.
There were also unconfirmed reports that villagers saw a group of men with three foreigners on February 25 at around 9:30 pm near Hazachha village.
As the hostage crisis entered its third week yesterday, the authorities got information about the hostages after eight days.
Jhon Geddes, press officer of the British High Commission, said that they were encouraged by a large participation at the meeting at Bethchhari on Thursday. He hoped it would lead to immediate release of the hostages.
"Primary concern remains the safety of Torben, Tim and Nils. They have now spent 14 nights away from their families," he said .