The head of a day care centre in the Philippines has seized a busload of his children, saying he is demanding better housing and education for them.

The man identified as Jun Ducat, and at least one other armed hostage-taker, took the 32 children and two teachers hostage as they departed for a trip.

Police and worried parents surrounded the bus as the drama unfolded outside Manila City Hall.

Mr Ducat is reported to have agreed to free the children at 1900 (1100GMT).

But the reported deadline has now passed without any sign of an end to the siege.

Mr Ducat had earlier told local media he had no intention of harming the children.

Using a mobile phone from the bus, Mr Ducat said he was demanding better housing and education for the 145 children at his centre in Manila's poor Tondo district.

"I am so sorry I took these children in a violent action to call the attention of the Filipino people to open their minds to the police reality," he said.

One boy suffering from a fever was released.

Some of the parents who had gathered at the cordon were reported to be in near hysteria as the struggled to make sense of the unfolding events.

"[Mr Ducat] told us it was a field trip. We knew Mr Ducat and he has been very kind. Please let our children go," Clara Moreno was quoted by the AFP news agency as saying.