Abu Sayyaf militants executed another of its hostages in Sulu on Monday afternoon, after the 3 pm deadline for the ransom lapsed.
Abu Sayyaf spokesperson Abu Raami told The Philippine Inquirer over phone that they killed Canadian national Robert Hall.
He also said that the 51-year-old foreigner's body would be found somewhere in Jolo town on Monday.
The militant group was demanding a ransom of 600 million Peso for the release of three foreign hostages including Hall, Norwegian Kjartan Sekkingstad and Filipina Marites Flor.
The Philippine Inquirer reported that just hours before his scheduled execution, Hall had appealed to the Philippine government "to get us all out here".
He said, "My condition is pretty bad. We have been starved, our sleep is deprived and they threaten to beat me," reports The Inquirer.
The Philippines Armed Forces is still verifying the report of Hall's beheading. The Western Mindanao Command spokesperson Major Filemon Tan said, "I cannot confirm or deny it. We don't have reports yet coming from our units on the ground. Will update you as soon as we get data or reports from line units".
In April Abu Sayyaf killed 68-year-old Canadian hostage John Ridsdel after a ransom deadline expired.
The Islamist militants in the Philippines, who took hostage several foreigners six months ago, hadthreatened in March they would kill the captives within a month if their demands were not met.
Ridsdel and others were abducted from a stronghold of the al-Qaeda-linked Abu Sayyaf, an Islamist militant group that aims to create an Isis-style caliphate in the south of the Philippines.
The group is known for kidnaps for ransom and gruesome execution of victims.
Who are Abu Sayyaf guerillas?
Abu Sayyaf translates into 'Bearer of the Sword'. It is an Islamic militant group founded in the early 1990s by a preacher who returned from the Afghan war.
Abu Sayyaf took shape as a splinter group of the Moro National Liberation Front MNLF).
The group was behind several bombings, hostage taking and kidnap for ransom throughout the 90s. They were behind the Manila bombings in 2005 and the bomb explosion outside the Philippine Congress in 2007 that killed a Congressman and three others.
In 2001 they kidnapped tourists from a resort and murdered three of the hostages later, including an American.
Abu Sayyaf's vision is the establishment of a pan-Islamic super-state in Southeast Asia. Their immediate goal is to set up an Islamic state in the western Mindanao and the Sulu Archipelago.
Abu Sayyaf founder Abdurajak Abubakar Janjalan was killed in a military action in 1998 and his brother who took over the reins of the outfit was killed in 2006.
The outfit has been linked to al-Qaeda and Jemaah Islamiah at various times