Authorities shut down Azamn daily in August, drawing condemnation from international rights groups.
During today's hearing, the court sentenced editor-in-chief Ibrahim al-Maamari and his deputy Yousef al-Haj to three years in prison, the sources said.
The pair were also ordered to pay a fine of 3,000 rials (USD 7,800) each and were banned from working in journalism for one year.
The court also jailed their colleague Zaher al-Abri for one year. He was also fined 1,000 rials (USD 2,600).
Also Read
Haj was convicted of publishing an interview with a senior judiciary official even after being ordered not to do so.
Maamari was the first of the three to be arrested on July 28, two days after the newspaper published an article which accused public officials of corruption and interference in judicial decisions.
Authorities later detained his two colleagues.
"With these convictions Oman's authorities have sent the unmistakable message that they will not tolerate investigation into state conduct, or the criticism that may result from it," rights group Amnesty International said in a statement.
And last month, Reporters Without Borders (RSF) and the Committee to Protect Journalists (CPJ) wrote to Sultan Qaboos asking him "to intercede to obtain the unconditional release" of the three journalists.
Their letter to the emirate's ruler said the three were "being unjustly detained and prosecuted in connection with an article about suspected corruption within Oman's judicial system.
"Detaining and prosecuting journalists because of their investigative coverage of a judicial case amounts to criminalising the very essence of journalism, which is to provide the public with information," the watchdogs said.
Oman is ranked 125th out of 180 countries in RSF's 2016 World Press Freedom Index.
Disclaimer: No Business Standard Journalist was involved in creation of this content