The footage, filmed in Aleppo, Syria, is purportedly the final film in a series featuring the British photojournalist.
Latest Islamic State film presents photojournalist giving casual tour of Iraqi city, and showing how "normal" life is under militant control.
Three sources have said that they would be willing to deliver the body of the slain journalist across the Turkish border.
In the latest propaganda video released by the group, British hostage John Cantlie appears to report from Kobane, site of an ongoing battle between the Islamist militants and Kurdish forces.
The Islamic State's media arm released a new video featuring British hostage John Cantlie reading a scripted message from his captors.
Kidnapped journalist delivers IS response to Obama's strategy in Iraq and Syria, claiming group is looking forward to meeting 'his under-construction army.'
James Cantlie, a British journalist held hostage by IS, delivers apparently scripted remarks to dissuade Westerners from going to war against the group.
Is Syria the new Bosnia?