The sentence was handed down on Otto Warmbier, a 21-year- old student from the University of Virginia, by North Korea's Supreme Court, Xinhua said in a brief dispatch datelined Pyongyang.
There was no immediate confirmation of the sentence on North Korean state media.
Warmbier, who was arrested in early January as he was leaving the country, later said he had removed a political banner from the staff-only area of the Pyongyang hotel being used by his tour group.
In recent weeks, Pyongyang has maintained a daily barrage of nuclear strike threats against both Seoul and Washington, ostensibly over ongoing, large-scale South Korea-US military drills that the North sees as provocative rehearsals for invasion.
Warmbier had entered North Korea as part of a New Year tour organised by China-based Young Pioneer Tours. He was arrested when the group was set to return to Beijing on January 2.
Warmbier is one of three North Americans currently detained in North Korea, which last month sentenced a 60-year- old Canadian pastor to life imprisonment with hard labour on sedition charges.
In the past, North Korea has used the detention of US citizens to obtain high-profile visits from the likes of former US president Bill Clinton in order to secure their release.
Detained foreigners are often required to make a public, officially-scripted acknowledgement of wrongdoing, and Warmbier was paraded in front of reporters and diplomats in Pyongyang at the end of last month.
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