Sixty-year-old Mohammed Yusuf Ali was found guilty under the controversial blasphemy law for misguiding Muslims by presenting himself as a prophet of Islam.
He has a right to appeal in the High Court.
Mohammed Yusuf Ali has been at the centre of a religious controversy in Pakistan for the last few years.
A former army officer, Mr Ali was a cult figure for his followers, who thought he had unique spiritual powers.
During the trial that lasted for more than a year, Mr Ali consistently denied the charges.
The judge however declared in his verdict that there was irrefutable evidence that he had tried to present himself as a prophet of Islam and under the country's blasphemy law, sentenced him to death.
He is perhaps the first Muslim in the country to have been given the death sentence under the blasphemy law, which human rights groups say has often been misused against the religious minorities.
Earlier this year, the military ruler, General Pervez Musharraf, changed the legal procedure to discourage the misuse of the blasphemy law.
But following pressure from the Islamic group, he soon took back the decision