"We are satisfied with the progress made in talks between the government of India and our representatives," the United Liberation Front of Asom (Ulfa) said in a statement in Guwahati, Assam's largest city.

"The sincerity shown by the government to bring a lasting solution to the problem in Assam has given us hope," it said on Saturday.

The Ulfa, which has been fighting for an Assamese homeland since 1979, said it awaited the release of five of its imprisoned leaders in line with a pledge made at talks its representatives held last month with the Indian government.

"We hope the assurances given by the Indian government becomes a reality to pave the way for direct talks," Ulfa chief Arabinda Rajkhowa said in the statement.

The last round of direct talks between Ulfa leaders and New Delhi took place in 1992 after the government freed five jailed rebels in the run-up to the negotiations.

The talks ended abruptly after the five freed rebel leaders went underground.