Wagga man Timothy Weekes is set to be freed by the Taliban after spending more than three years as a hostage.
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The Afghanistan government announced on Tuesday that it will release two senior Taliban commanders and militant group leader in exchange for Mr Weekes and American colleague Kevin King, who were kidnapped in 2016.
According to Arabic TV network Al Jazeera, Afghan President Ashraf Ghani did not specify when or where Mr Weekes and Mr King would be freed during a televised speech on the prisoner swap.
Mr Ghani noted in his speech that "their health has been deteriorating while in the custody of the terrorists".
United States and Australian diplomats did not make any comments on the prisoner swap prior to publication deadline.
Mr Weekes and Mr King were seized by gunmen in the Afghan capital city of Kabul in August 2016.
The Taliban stunned Mr Weekes' friends and family in 2017 by releasing footage of the 49-year-old former Ashmont resident begging for his life.
The Islamic extremist group uploaded a 13-minute video of the teacher breaking down in tears, pleading for the Australian and US governments to arrange a prisoner exchange to prevent his execution.
A visibly distressed Mr Weekes also gave a heart-wrenching address to his ailing mother.
"My mother, I know you are sick in hospital and I may never see you again," he said.
"If we stay here for much longer, we will be killed. I don't want to die here - I'm alone and I'm scared."
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The government's decision this week to free Anas Haqqani and two other Taliban commanders in a prisoner swap was taken in the hope of securing direct talks with the Taliban, which has hitherto refused to engage with what it calls an illegitimate "puppet" regime in Kabul.
"In order to pave the way for a face-to-face negotiations with the Taliban, the government has decided to free Taliban prisoners in exchange for two university professors," Afghan President Ashraf Ghani said in a televised speech.
Ghani said Anas Haqqani and Taliban commanders Haji Mali Khan and Hafiz Rashid were being released. All three were captured in 2014.
The prisoner exchange comes at a time when efforts were being made to revamp peace talks between the United States and the Taliban.
The Haqqani network has in recent years carried large-scale militant attack on civilians. It is believed to be based in Pakistan and is part of the Taliban in Afghanistan.
Anas Haqqani is the younger brother of Sirajuddin Haqqani, who is second-in-command in the Afghan Taliban hierarchy and leads the Haqqani network, considered to the deadliest faction of the Afghan Taliban.
A Taliban spokesman earlier this year said that movement was determined to obtain Anas Haqqani's release and named him as a member of a negotiating team that would hold talks with US officials.
The Taliban had kidnapped Weekes and King in August 2016 from the American University of Afghanistan in Kabul.
Ghani said authorities had been unable to discover where the Taliban were holding the two captive.
"Information suggests that their health while being held by the terrorists has deteriorated," he said.
Pakistani Prime Minister Imran Khan during a three-day visit to Washington in July that he would do his best to help release the American University professors.
A Pakistani delegation, including the chief of the powerful Inter-Services Intelligence (ISI) spy agency was in Kabul to meet Afghan authorities on Monday.
A senior Pakistani official in Islamabad said the exchange of prisoners was discussed by the delegation.
According to Afghan officials, the next round of talks between the Taliban and Afghan representatives is slated for this month in Beijing.
- with Australian Associated Press