Mogadishu: Two German hostages kidnapped since June from a yacht off Somalia have been freed, an official said on Saturday.

Pirates released the hostages late on Friday from a hideout near Puntland, north of Somalia, said Muse Geele Yusuf, governor of Bari region.

"Two German hostages have been released," Yusuf said, adding that a $1 million ransom was paid.