Harrowing images of the killing are being shared by supporters of the terror group on social media and show the victim lying in a pool of blood with his severed head resting on his back.
One of those distributing the sickening pictures is a man claiming to be a British militant fighting for the terror group who goes by the nom de guerre Abu Bakr al-Britani.
The gruesome photographs are understood to have been taken near Tikrit in Iraq's Salah al-Din province, where members of the Iraqi Army and allied Shiite volunteer militias have had great success in forcing the terrorists to withdraw in recent weeks.
The exact crime the beheading victim is accused of committing is not known, but images of his violent death were uploaded to Twitter saying he was a 'sorcerer'.
ISIS later beheaded people accused of sorcery and witchcraft.
Surrounding the man's lifeless body are dozens of brightly-coloured prayer beads.
It is likely the man had been selling the items,which ISIS terrorists consider bid’ah, meaning a 'reprehensible innovation', Mail Online reports.