According to the file released by the National Archives, an unnamed contact told a British diplomat in Paris that the Shin Bet and the PFLP collaborated to seize the plane, which was hijacked in Athens and flown to Entebbe in Uganda, where 98, most of hem Israelis, were held hostage.
The crisis was brought to an end after Israeli commandos stormed the airport. Three Israeli hostages and one Israeli commander, Yonatan Netanyahu, were killed during the raid.
In the document, written on 30 June 1976 when the crisis was still unresolved, DH Colvin of the Paris Embassy wrote that according to his source, "the hijack was the work of the PFLP, with help from the Israeli Secret Service, the Shin Bet.
"The operation was designed to torpedo the PLO's standing in France and to prevent what they see as a growing rapprochement between the PLO and the Americans."
He added: "My contact said the PFLP had attracted all sorts of wild elements, some of whom had been planted by the Israelis."