The Palestinian group Hamas handed over Bipin Joshi's body to Israel.
Hamas handed over the bodies of four people, including Joshi, to Israel through the Red Cross on Monday night, the Times of Israel reported.
Bipin Joshi's status was unknown until the day the hostages were released.
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Israel had not confirmed Joshi's death earlier.
The terror group handed over the bodies of Nepali national Bipin Joshi and Israeli citizens Gully Illouz, Yossi Sharabi and Daniel Perez.
Hamas has not yet handed over the bodies of 24 dead hostages as per the agreement.