Resident's of the Egyptian village of Naga Shabana near North Sinai's Rafah city found the decapitated head of a young man they said was kidnapped by militants on Thursday, Reuters' Egyptian news website Aswat Masriya reported.
According to eyewitness reports, the 23-year-old was kidnapped by armed men riding a four-by-four vehicle close to his home in Naga Shabana.
Security sources speaking to Aswat Masriya said they are tracking suspects.
On 20 August, the decapitated bodies of four men were found by residents in the North Sinai town of Sheikh Zuweid. Security forces said the victims, abducted two days earlier, might have been targeted for perceived cooperation with the army and police.
In a video released Thursday, the Sinai-based militant group Ansar Bayt Al-Maqdis showed the beheading of four Egyptian men, accusing them of providing information that helped an Israeli drone strike kill three of the group's fighters last month.
Egyptian troops in the Sinai Peninsula, adjoining Israel and the Palestinian Gaza Strip, are fighting an Islamist insurrection that has worsened since the army's popularly-backed ouster of Islamist president Mohamed Morsi in July 2013.