(FOX NEWS) The Associated Press is reporting that one American has died in the Algerian hostage standoff.

The State Department confirmed Friday there are still American hostages being held at a gas plant in Algeria – but asked about a report that the Al Qaeda-linked group wants to trade hostages for terror figures jailed in the United States, spokeswoman Victoria Nuland said: “The United States does not negotiate with terrorists.”

A Mauritanian news site that often reports news from North African extremists received a statement Friday about the Al Qaeda-linked group offering to trade two Americans being held for two terror figures jailed in the United States. One of the two, Omar Abdel Rahman, masterminded the 1993 World Trade Center bombing.


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