Denis Cuspert, also known by his artist name Deso Dogg, used to rap in Berlin and was one of the most high-profile Western fighters for the Islamic State.
His role making videos for the terror group has been likened to that of Nazi propaganda chief Josef Goebbels.
He is also believed to have produced the sickening footage of Jihadi John beheading British and US prisoners with a knife.
U.S. Defense Department spokeswoman Elissa Smith confirmed the 39-year-old was killed in an air strike on October 16 near the Syrian city of Raqqa.
Cuspert joined ISIS in 2012 and went on to appear in numerous videos from the militant group, including one in November last year ‘in which he appears holding a severed head he claims belongs to a man executed for opposing ISIL’, the State Department previously said.
He also released a propaganda video where he calls on jihadist sleeper cells in Europe to carry out terrorist attacks, in Britain, Germany and France, rapping ‘We want your blood’.
In February, it was revealed the militant was being spied on for the FBI by a Syrian woman he thought was his wife.
The spy transmitted critical information about the rapper and his ISIS colleagues before escaping to Turkey – where she was arrested and then turned over to the US.
The footage is filled with horrific footage of prisoners being beheaded and Jordanian pilot Moath al-Kasasbeh being burned alive.
Cuspert had pledged an oath of loyalty to ISIS group leader Abu Bakr al-Baghdadi and was a chief recruiter of German fighters.
According to Smith, Cuspert threatened Obama and U.S. and German citizens and had also encouraged Western Muslims to carry out ISIS-inspired attacks.
‘Cuspert was a foreign terrorist fighter and operative for ISIL who used social media to take advantage of disaffected youth and potential Western recruits,’ she said, using an alternative name for the ISIS group.
ISIS prohibits music, but singing is allowed, and some of the jihadists’ grisly videos are set to a vocal sound track.
Earlier in the day, a defense official speaking on condition of anonymity said that Cuspert ‘was not considered a high-value target (and) we were not specifically targeting him.’
He also noted that other ISIS jihadists may have been hit.
Jihadist sources in April 2014 said Cuspert had been killed in Syria but they later retracted the claim.
Cuspert, who later went by Abu Talha al-Almani, was listed as an Al Qaeda supporter by the United Nations.