Najib Razak told a press conference new analysis by the UK Air Accidents Investigation Branch and tracking firm Inmarsat indicated the flight ended in the southern Indian Ocean.
Malaysia Airlines Flight MH370 vanished from civilian radar screens less than an hour after take-off from Kuala Lumpur for Beijing with 239 people on board on March 8.
No confirmed sighting of the plane has been made since, but much debris has been found in remote waters off Australia which might be part of the missing plane.
According to Sky News, the families of the passengers on the missing plane are now due to be booked on to flights to take them to Australia.
Dressed in a black suit, Najib announced the news in a brief statement to reporters today, saying the information was based on an unprecedented analysis of satellite data from Inmarsat.
He said the data indicated the plane flew 'to a remote location, far from any possible landing sites'.
He said: 'It is therefore with deep sadness and regret that I must inform you that, according to this new data, Flight MH370 ended in the southern Indian Ocean.'
Selamat Omar, the father of a 29-year-old aviation engineer who was on the flight, said some members of families of other passengers broke down in tears at the news.
'We accept the news of the tragedy. It is fate,' Mr Selamat told the Associated Press in Kuala Lumpur.
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