The photojournalist presents the documentary-style clip in English, claiming that "life in Mosul is business as usual" and that media reports suggesting the city is "depressed" and "living in fear" are "misleading".
The country's second largest city was captured by ISIS militants during a blitz in June when they murdered more than 2,000 Shiite prisoners and soldiers, according to Human Rights Watch.
The eight-minute video which sees 43-year-old Mr Cantlie visit a market, a hospital and a police station purports to paint life in the bomb-hit city as stable.
In the video, Mr Cantlie tells the camera: "The media likes to paint a picture of life in the Islamic State as depressed, people walking around as subjugated citizens in chains, beaten down by strict, totalitarian rule.
"But really apart from some rather chilly but very sunny December weather, life here in Mosul is business as usual."
The hostage has been held captive for more than two years by ISIS terrorists. In previous instalments he has delivered his message under duress from behind a desk and wearing an orange jumpsuit.
The last video of the photojournalist released in November saw him give an account of what he claims was a failed rescue attempt by American forces in July.
In it Mr Cantlie says he accepted "long ago" that his fate is "overwhelmingly likely" to be the same as other captives.
Other footage released by the group in October purported to show him in the embattled Syrian city of Kobani.
Since August, Isis has filmed and posted online the deaths of four Western hostages.
UK aid workers Alan Henning and David Haines and American journalists James Foley and Steven Sotloff were beheaded on camera by the jihadi organization.