Robert Hall was kidnapped by the Islamist group in September along with three others from Canada, the Philippines and Norway.
Fellow Canadian John Ridsdel was killed by the group in April after a multi-million dollar ransom deadline expired.
Canadian Prime Minister Justin Trudeau had earlier said he believed it was "likely" Mr Hall was dead.
In a statement on Tuesday, outgoing Philippines President Benigno Aquino confirmed the killing.
"This latest heinous crime serves to strengthen our government's resolve to put an end to this reign of terror and banditry," he said.
Source: BBC News
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