"Canada is very pleased to confirm that the death sentence against Mohamed Kohail has been revoked and that a retrial has been ordered," Foreign Minister Lawrence Cannon said in a statement.
"The government of Canada has repeatedly raised the cases of Sultan and Mohammed Kohail directly with senior Saudi ministers, and this case remains a priority for our government," he added.
Brothers Mohamed and Sultan Kohail were arrested in Saudi Arabia in early 2007 on charges of killing a fellow Syrian student during a fight.
In contrast to Mohamed who received a death sentence, Sultan Kohail was sentenced to one year in jail and 200 lashes because he was a minor at the time of the incident.
Keep up with the latest business news from the region with the Emirates Business 24|7 daily newsletter. To subscribe to the newsletter, please click here.