According to Abu Sayyaf, the couple were cruising off Malaysia`s Sabah state when the militants intercepted them, the Filipino military say.
The Abu Sayyaf group said it was behind the incident.
Image copyright AFP Image caption Jurgen Kantner and his wife Sabine Merz (file picture) were both killedThe body of a German hostage beheaded by Islamist militants in the Philippines this week has been recovered, military officials say.
Abu Sayyaf is one of the smallest and most violent jihadist groups in the southern Philippines, known for its brutality, including beheadings.
Jurgen Kantner was abducted from his yacht in November.
Dramelin
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