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Mobin Abdurajak, said to be a senior leader in the Abu Sayyaf group, was wanted for the abduction in 2000 of 21 people from a Malaysian resort.

Regional officials said he died in a shootout when marines swooped on his hideout in the island of Tawi-Tawi.

The United States had offered $20,000 (£9,900) for his arrest.

Mobin Abdurajak was a brother-in-law of Abu Sayyaf chief Khadaffy Janjalani, who was killed in a clash with Philippine troops last year.

"The neutralisation of Abdurajak is part of our campaign to eliminate the Abu Sayyaf terrorists," regional navy chief Emilio Marayag said, according to the Reuters news agency.

In the mainly Catholic Philippines, Abu Sayyaf is the most notorious of several active Muslim rebel groups.

Last week, 14 of its members were jailed for life for abducting 20 people from a luxury beach resort in the western Philippines in 2001.

Three of the victims, including an American, were decapitated.

British troops withdrew to a base on the outskirts of Basra in September

The survey for BBC Newsnight of nearly 1,000 people also suggests that 56% believe their presence has increased the overall level of militia violence.

Two-thirds think security will improve when the British hand back control of the province to Iraqi forces on Sunday.

The 4,500 British troops in Iraq will then focus on training Iraqi forces.

The move to Provincial Iraqi Control will eventually pave the way for UK troop numbers to be reduced to 2,500 from the spring.

Basra is the ninth of Iraq's 18 provinces to resume responsibility for its own security and the fourth to be handed over by British forces after Muthanna, Najaf and Dhi Qar.

Improvement expected

The Public Attitudes in Basra survey carried out for Newsnight by the UK-based polling agency, Opinion Research Business (ORB), interviewed a random sample of 922 adults across the southern city of Basra between 3 and 8 December.

The survey's results suggest that only 2% of Basra residents believe that British troops have had a positive effect on the province since they helped the US overthrow Saddam Hussein in March 2003.

An overwhelming majority of 86% felt British troops had had a negative effect.

More than half felt the troops' presence had actually increased the overall level of militia violence over the past four years, while 14% said they believed the British forces had made no difference at all.

Looking to the future, a total of 83% of those surveyed said they wanted British troops to leave Iraq, including 63% who wanted them to leave the Middle East altogether.

However, nearly a tenth disagreed and said they would like the troops to remain in a camp on the outskirts of Basra, where they could be called upon in a time of crisis.

The majority of those questioned felt that once provincial control was handed over to local Iraqi security forces, the security situation would begin to improve.

Two-thirds felt security would improve in the short term, while 72% said it would improve in the long term. Only 5% said security would deteriorate following the withdrawal.

Correspondents say British troops have had a relatively minor influence on the security situation in Basra since they withdrew to a base at the airport outside the city in September.

'Women targeted'

BBC correspondent Andrew North said that, since the withdrawal, the militia has been orchestrating a campaign of violence against women.

He said most people believed the militia were responsible for the deaths of more than 40 women killed in the past few months.

But in a rare interview, Ali Al Saedi, of the Mehdi Army, denied targeting women.

"If this is true, this violence exists everywhere in America and Britain as well. Nobody can blame any block or movement for any of these crimes," he told BBC News.

Our correspondent also said the British base in Basra was still coming under attack from mortar fire.

Major Mike Shearer, a military spokesman in Basra, said: "It's about managing the security here.

"We never professed to be handing over a white-picketed Basra that resembled something out of the Stepford Wives."

More than 170 British servicemen and women have died while serving in Iraq since 2003.

Do you feel that once British troops hand over control to Iraqi forces in Basra, the security will improve, deteriorate or stay the same?

Iraqi troops will have to control insurgents

The handover marks a significant milestone towards Britain's final withdrawal from southern Iraq.

Maj Gen Graham Binns, who led British troops into the city in 2003, said it had "begun to regain its strength".

Iraq's National Security Adviser, Dr Mowaffak al-Rubaie, said the "historic" day marked a "victory for Iraq".

In a ceremony at Basra airport, British and Iraqi representatives signed a memorandum of understanding to formalise the handover.

Foreign Secretary David Miliband, who was present, said Britain would remain a "committed friend" to Iraq.

"Our aim is to see an Iraq run by Iraqis for all Iraqis," he said.

Dr al-Rubaie thanked British troops for their role in protecting the city from insurgents, retraining Iraqi soldiers and rebuilding the economy.

He also praised the "sacrifices" made by the people of Basra.

"This means a victory for Iraq and a defeat for its enemies," he said.

Backseat role

Iraqi troops will now be responsible for controlling insurgents in the area, with British troops in a backseat role.

British troops left their Basra city base in September

Maj Gen Binns said Iraqi security forces had proved they were ready to take over, but the recent reduction in violence must "continue and improve" if Basra was to realise its "enormous potential".

"I came to rid Basra of its enemies and I now formally hand Basra back to its friends," he added.

British troops will now only get involved in combat if they themselves are attacked or if Iraqi commanders call for support.

The 4,500 British troops still in Iraq will focus on training Iraqi forces. UK troop numbers are set to be reduced to 2,500 from the spring.

The governor of Basra, Mohammed al-Waili, said he wanted to create "an arms-free city".

"The arms and weapons should be in the hands of the armed forces only," he added.

We are not handing over a land of milk and honey Foreign Secretary David Miliband

BBC correspondent Andrew North said despite question marks over Iraqi security forces, especially the police, British commanders believed it was best for Iraqi forces to take the lead.

Mr Miliband told the BBC there had been a "massive" reduction in insurgent activity in the last six months, although "common criminal violence" still needed to be addressed.

And he said Iraq was still a "very, very violent" place, adding: "We are not handing over a land of milk and honey.

"Our troops retain the capacity to intervene again should there be a breakdown of order."

Major General Patrick Cordingley, who commanded UK troops in the first Gulf War, said ordinary British soldiers in Iraq felt they had done "a very good job in extremely difficult conditions".

The most important task now in Basra, he said, was to improve the infrastructure.

'Home quicker'

Basra is the ninth of Iraq's 18 provinces to resume responsibility for its own security and the fourth to be handed over by British forces after Muthanna, Maysan and Dhi Qar.

In a poll of 1,000 Basra residents for BBC Newsnight, more than 85% said they believed British troops have had a negative effect on the Iraqi province since 2003.

But two-thirds thought security would improve following the handover.

Rose Gentle, whose son Gordon was killed in Iraq in 2004, has campaigned against the presence of British troops there.

We have never pretended that we were going to hand over a state that resembled Surrey Maj Mike Shearer

She told the BBC: "I'm not saying they've not achieved anything, I just don't think they should have gone in the first place.

"We're proud of every one of them for what they have done, but I think they should have been home a lot quicker."

Col Bob Stewart, former British commander with UN forces in Bosnia, told BBC News 24 that Britain's only real achievement in Iraq had been to remove Saddam Hussein from power.

"We've got rid of Saddam, but we haven't given the Iraqis a great life," he said.

"If you were to actually grade it, one to 10, from the point of view of someone who lives in Basra... probably we would score it about three."

Maj Mike Shearer said: "We have never pretended that we were going to hand over a state that resembled Surrey.

"We've always said that we would hand over the province when it was manageable for the Iraqi security forces, and it is just that."

Three months ago, British troops pulled back from Basra city to their airport base.

Prime Minister Gordon Brown, who visited British troops in Iraq last weekend, said Iraq now had a democratic government and that violence was down 90% in recent months.