Craig Gibson, 28, appeared in court on Monday accused of assaulting Brett Sheffield, 38, in a bar in Toronto city centre on the night of 28 August.
Toronto Police said officers responded to reports of an assault in the Portland Street and King Street West area just before 11.30pm, rushing the victim to hospital in a critical condition.
However, two days later, Mr Sheffield, a businessman from Manitoba, died from his injuries.
A defence source said Mr Gibson went on a night out with The Highlanders 4th Battalion and hit the local man “with an elbow to the jaw”, according to The Telegraph, “knocking the local unconscious instantly”.
The company Mr Sheffield founded, NextGen Drainage, has paid tribute to the 38-year-old on social media, describing his “passion for helping every person feel valued and cared for”.
A spokesperson for the British Army told the BBC: “We can confirm a British soldier has been arrested and charged for second-degree murder by the Toronto Police, Canada.
“Our thoughts are with the family of the victim at this tragic time.
“As the matter is the subject of an ongoing investigation by the Canadian authorities, it would be inappropriate to comment further.”
The Independent has contacted the British Army for updated comment.