The gang of bandits, which was entrenched in Katcha Jamal area of Rajanpur district in southern Punjab and taken 24 policemen hostage at the start of the operation Zarb-i-Ahan, has released the hostages, sources said.
According to sources, Chhotu gang had made ceasefire on Tuesday evening, later the bandits released the hostages and laid down arms before the armed forces.
The military sources, however, yet to confirm the development.
Police earlier said that the gang had been using the hostages as a human shield to protect the women and children accompanied with them.
The Army taken the reins of the anti-bandit operation on April 16, after seven police officials were killed and 24 others taken hostage by the gang.
DG ISPR Lt-Gen Asim Bajwa had earlier said in a statement that a cordon was being reinforced and police and Rangers had been deployed to participate in the operation under the Army.
The Army had warned Chhotu gang, led by Ghulam Rasool Chhotu, to surrender on Monday, or it would begin a full-scale operation in the area.