American student Otto Warmbier has been sentenced to 15 years hard labour by North Korea's highest court after he was arrested for removing a political banner from a hotel.

According to the Guardian, the 21-year-old University of Virginia undergraduate student was convicted and sentenced in a one-hour trial on Wednesday morning at the country's Supreme Court after being charged with subversion.

Warmbier was arrested as he prepared to leave Pyongyang in January.

He was paraded last month in front of the media as North Korea announced that he was being charged with the theft of a political banner.

During the press conference he broke down, acknowledging and apologising for the supposed crime.

According to Warmbier's statement, he took the banner with a political slogan on it as a trophy for a church member.

After footage of Warmbier's "confession" was released, the US accused the North Korean regime of using him for propaganda purposes.

Warmbier was arrested while visiting the country with Young Pioneer Tours, an agency specialising in travel to North Korea