Pistorious killed his girlfriend Reeva Steenkamp in February 2013 after shooting four times through a locked toilet door.
He is currently under house arrest after spending one year of his original five-year sentence in jail.
Pistorius will have to return to court to be re-sentenced, for murder.
It was earlier incorrectly reported that the court had ruled the manslaughter verdict would remain.
South Africa's Supreme Court of Appeal ruled that the lower court did not correctly apply the rule of dolus eventualis - whether Pistorius knew that a death would be a likely result of his actions.
The minimum sentence for murder in South Africa is 15 years, but judges can apply some discretion.
South African law does not make provision for someone to be placed under house arrest for more than five years, so Pistorius will be going back to prison, reports the BBC's Pumza Fihlani in Johannesburg.
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