A British photojournalist kidnapped two months ago in Basra has been freed after Iraqi soldiers stormed the house where he was being held.

One of Richard Butler’s captors was arrested and another was wounded during the 30-minute shoot-out but managed to escape. There was no immediate indication as to who the kidnappers were or why they seized him.

Yesterday’s dramatic rescue was a much needed triumph for Iraq’s fledgling army, which launched an offensive against Shia militias and criminal gangs in the city three weeks ago, backed by the US military.

Butler, a married father of two, appeared to be in good health, but slightly thinner. His captors had kept him in handcuffs with a hood over his head. He thanked his rescuers and said he was looking forward to seeing his family and friends. He was later given a medical check-up at the British military base at Basra airport.

He told Iraqi state television: “The Iraqi Army stormed the house and overcame my guards and then burst through the door. I had my hood on, which I had to have on all the time, and they shouted something at me and I pulled my hood off.”

Butler was seized by gunmen from a hotel in Basra on February 10 along with his Iraqi interpreter. The pair had been working on an assignment for CBS News, the American network.

In confusing scenes after the kidnapping, the office of the Shia cleric Moqtada al-Sadr — whose al-Mahdi Army militia had a strong presence in the oil-rich city — said that it would secure the Briton’s release. Several days later, the interpreter was freed but there had been no word on Butler.

Jason Howe, a fellow photojournalist and friend, told The Times: “I am very happy for him and his family. I bet he is already cooking up a book deal . . . and wondering who will play him in the movie.”

A spokesman for the Iraqi Defence Ministry described how soldiers from the army’s 14th Division targeted a suspect house in an affluent Basra neighbourhood at about midday, cordoning off the area before approaching.

“Our forces . . . were confronted by heavy fire from four gunmen,” said Major-General Mohammed al-Askari. One man was arrested. Another was wounded but taken by the others, who fled in a vehicle.

“When we entered the house, we found the British journalist. He is in good health. We have handed him over to a British general,” said General al-Askari.

Locals in the suburb of Jubaila were surprised to discover that the Briton had been held there. “This is a quiet and nice neighbourhood,” said a man who lived on the streetwhere Mr Butler had been held. “We did not have problems with such things as kidnappings or killings.”

The rescue demonstrates the progress that commanders say is being made in Basra after Nouri al-Maliki, the Iraqi Prime Minister, launched the offensive against al-Mahdi Army and other militant gangs last month.

US and British forces are embedded with the Iraqi troops, who are conducting door-to-door searches and targeted raids. The port city had been a no-go area for British Forces after they handed it back to the Iraqi authorities in December.

Christopher Prentice, the British Ambassador in Baghdad, praised the “alertness and professionalism” of the Iraqi forces involved in the rescue. “We are delighted with this happy outcome which will be a source of great relief and comfort to Mr Butler and his family,” he said in a statement.

There is still no news, however, of five other Britons — four security guards and a computer expert — kidnapped last May in Baghdad.

Butler, who lives in France, has much experience of covering conflicts around the world. He has worked for The Sunday Telegraph, The New York Times and Financial Times, as well as CBS and was one of only a few freelance photographers in Baghdad to record its fall in early 2003.

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