"Villagers and members of the security forces have confessed that they committed murder", the military said in the statement, promising that those responsible would be "dealt according with the law".
Myanmar's admission that soldiers were involved in the murder of 10 Muslims in September was an important step and the United States hoped it would be followed by more transparency and accountability, the USA ambassador said on Thursday.
Asked about the admission on Wednesday by Myanmar's military that its security forces and Buddhist villagers killed 10 captured Rohingya during clashes previous year, Suu Kyi stressed the importance of the rule of law and said the military will take responsibility.
Associated Press reported a statement made on the military commander's official Facebook page on 10 January in which he described the dead as "Bengali terrorists".
The military claimed they had rushed to Inn Din to protect frightened Buddhist villagers and had been attacked by "200 Bengalis" with sticks and swords, 10 of whom were arrested and accused of having links to terrorists.
The military announced on Dec 18 that a mass grave containing 10 bodies had been found at the coastal village of Inn Din, about 50 km north of the state capital Sittwe.
The Rohingya people have been previously targeted during 1999 and 2012, and the Karenni people suffered a similar fate when their villages were burned and they faced massive killings that forced them to flee to Thailand.
Warmer temperatures, freezing rain could cause flooding this weekend
The region, which has been nearly completely dry this winter, was expected to get as much as 4 inches of rain by early Tuesday . A blustery northwest wind may have gusts as high as 25 miles per hour adding to the bite of the plummeting air temperatures.
The villagers assisted in the execution, according to the statement, because they wanted revenge on the Rohingya militants who had killed their family members in the past.
Myanmar's army launched a sweeping offensive in the north of the western state of Rakhine in response to Rohingya militant attacks on August 25, triggering an exodus of more than 650,000 Rohingya villagers to Bangladesh.
"The army will take charge of those who are responsible for the killings and who broke the rules of engagement".
The military denied all accusations of significant human rights abuses in a report released in November following an investigation.
The government of Buddhist-majority Myanmar has refused to accept Rohingya Muslims as a minority group, even though they have lived in the country for generations. Security forces had to protect Inn Din village because it is surrounded by Muslim villages of which residents threatened the Inn Din villagers, it said.
James Gomez, Amnesty International's Southeast Asia and Pacific director, said the acknowledgement marked "a sharp departure from the army's policy of blanket denial of any wrongdoing".