Maoists released Malkangiri district collector of Malkangiri R Vineel Krishna and junior engineer Pabitra Majhi on Tuesday after the Orissa government gave in to all their demands.
But state government officials could not confirm the news.
Earlier, after the conclusion of the third day of talks with the state government, G Hargopal, one of the three Maoist-nominated mediators, told reporters that Krishna and Majhi would be freed in 48 hours.
The end to the week-long hostage crisis came after the state government agreed to withdraw cases against five Maoists leaders.
Home secretary UN Behera said the security forces would take no coercive action as long as the Maoists did not indulge in unlawful activities.
On the demand for release of rebel leaders, Behera said the matter would be examined on merit.
The breakthrough came after the government agreed to meet six demands of the rebels, after having settled eight of the total 14 demands a day earlier.
Krishna and Majhi were abducted from Chitrakonda area of Malkangiri district.