The M.V. Jahan Moni, which has 25 Bangladeshi crew and the wife of the chief engineer on board, was captured 550 kilometres (340 miles) off the southwest coast of India while sailing to Greece.

Owners of the vessel, which was carrying nickel from Indonesia, declined to give details of any ransom paid to secure the safety of the ship and crew.

"The ship is going to be freed before Monday morning. All 26 people are safe and they will disembark on the first port of call after the ship is released," acting foreign secretary Mostafa Kamal said.

The vessel, which is owned by the Chittagong-based Brave Royal Shipping company, is now near the Somali coast.

Experts have said merchant shipping is increasingly at risk off southwest India as pirates seek to avoid international naval patrols in the treacherous waters off the Horn of Africa.