UPDATE 5-Taliban release Pakistan envoy after fighters freed

(Releads, adds quotes from released envoy, ministry official)

By Simon Cameron-Moore

ISLAMABAD, May 17 (Reuters) - Taliban militants freed a kidnapped Pakistani ambassador on Saturday after the release of more than 40 Taliban fighters in recent days, a senior security official said.

Pakistan's envoy to Afghanistan, Tariq Azizuddin, was abducted on Feb. 11 while travelling from the northwestern city of Peshawar to the Afghan border, on his way back to Kabul.

Azizuddin was held by fighters loyal to Baitullah Mehsud, the leader of the Pakistani Taliban, in neighbouring South Waziristan, said the security official, speaking on condition of anonymity.

The official said more than 40 Taliban fighters held captive by the authorities had been released over the past few days.

Pakistan's most senior Interior Ministry official earlier denied that the envoy was released as a result of any prisoner swap and said there had been some kind of action.

Azizuddin said he was unaware of any clash between the militants and security forces.

The Taliban released several members of the security forces in return for the release of the fighters, the official said. It was unclear whether the ambassador, one of Mehsud's main bargaining chips, was exchanged for a specific militant.