"Our intelligence services have confirmed to me that he's alive," Mr Abbas (Mahmoud, the Palestinian president) told reporters in Sweden.
(Alan) Johnston, 44, has not been seen since he was seized at gunpoint on his way home in Gaza City on 12 March.
On Sunday, an unknown militant group said it had killed him, but the BBC said and Palestinian officials said they could not verify the claim.
Mr Abbas said he knew which group was holding Mr Johnston but did not give any details.
In Gaza, a senior security official said the earlier reports of Mr Johnston's death were unfounded.
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Missing BBC reporter still alive: Abbas
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