Terrorist group, ISIS has released a new video supposedly showing the headless body of one of the Japanese hostages in its custody.

The new video shows the second Japanese hostage, Kenji Goto holding a picture of the beheaded body of his fellow captive, Haruna Yukawa.

Goto speaks out in the video saying that ISIS had changed its demands and now wanted a prisoner exchange between him and instead of the $200 million ransom it had initially requested.

The sect is now demanding the release of Sajida al-Rishawi, an alleged suicide bomber, who is believed to be connected to the attack on a hotel in Jordan in 2005. She is currently imprisoned in Jordan.

Japanese government spokesman Yoshihide Suga responded to the video saying:

"This is an outrageous and unacceptable act. We strongly demand the prompt release of the remaining Mr. Kenji Goto, without harm."

Prime Minister Shinzo Abe also responded saying that Japan “will not give in to terrorism.”

Meanwhile Japanese authorities are attempting to verify the video to ascertain if Yukawa has indeed been beheaded.