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HARMEET SOODEN: New video footage shows a marked change, his family says. TV3

Hostage family's hopes shatter

But a police officer's early morning visit with news that the kidnappers had renewed a threat to kill Auckland student Harmeet Sooden, 32, and three other Western hostages shattered their hopes he had been freed.

New video footage showing the hostages was broadcast on al Jazeera television at the weekend. It was the first news of them since December 7, when their captors, the Swords of Righteousness Brigade, said they would be killed on December 10 unless Iraqi prisoners were freed.

The video showed the hostages – Mr Sooden, Briton Norman Kember, American Tom Fox and Canadian James Loney – standing against a wall. The grainy footage, filmed in a dark room, appeared to be dated January 21. The hostages seemed to be speaking to the camera but their voices could not be heard.

A statement received with the tape and read on air said the kidnappers were giving a "last chance" to United States and Iraqi authorities to "release all Iraqi prisoners in return of freeing the hostages, otherwise their fate will be death".

Mr Sooden's brother-in-law, Mark Brewer, said it was a relief to see him alive but the video had turned the Auckland-based family's world upside down.

They were woken about 4am yesterday by a police officer with what they thought would be news that he had been freed.

"We all just froze, you go numb. Since we saw a blue uniform at the door we thought it was someone to tell us that he had been released," Mr Brewer said.

"It's almost a feeling of seeing a Christmas tree but there's no presents under it."

The family spent yesterday watching international news on television and searching internet sites for information. They had not seen a full copy of the video but were shocked by Mr Sooden's appearance. "He looked changed, he has a beard and his hair is long. He has lost weight and he looks quite dishevelled."

The family watched the footage repeatedly for hints as to whether the captors' threats were genuine. "We are very optimistic. But waiting like this ... is quite excruciating. We're reading between the lines, grasping at straws. That's all you can do."

Mr Sooden's parents, Dalip and Manjeet Sooden, have applied for New Zealand residency so their son has a family home to return to when he is freed.

"They don't really know what to do or where to turn or what to say. It's just a very, very trying time," Mr Brewer said.

Prime Minister Helen Clark had phoned the Soodens to offer her support, Mr Brewer said.

Miss Clark said she was delighted that Mr Sooden had been seen alive and urged the captors to free the hostages.

"All four were on a peaceful mission to Iraq and were motivated purely by a desire to help the Iraqi people."

The Government would continue to liaise with Canadian officials who were trying to secure the hostages' release.

Chicago-based Christian Peacemaker Teams, of which the hostages are members, said it was "grateful and heartened" to see the men alive.

Muslim scholars and activists worldwide, including leaders of the militant Hamas and Hizbollah groups, have appealed for the release of the aid workers.