Iyaz Ali, a British citizen of Pakistani origin, arrested by the Shin Bet three weeks ago, admitted to having aided Hamas through his work for a British Islamic aid organization in Ramallah and Gaza.
Ali, 36, is a humanitarian aid worker for the Islamic Relief Worldwide organization (IRW).
According to the Shin Bet, Ali funneled sums of money to Hamas operative and charities in the Gaza Strip through his work for the IRW.
Ali, who was appointed as project manager in Gaza last December, told interrogators that he had transferred aid to Hamas charities al-Wafa and al-Salah, banned in Israel for backing a terror group and inciting against the Jewish State.
Ali is also suspected of having contacted Jordanian citizens suspected of links to Hamas by the Jordanian authorities.
Pictures of senior Nazi officials
Documents found in Ali's laptop point to links between the IRW and illegal Hamas funds in Britain and Saudi Arabia.
Investigators also found pictures of senior Nazi officials, of IDF emblems defaced with swastikas and of al-Qaeda leader Osama Bin Laden.
Ali will be released and deported to Britain when his interrogation ends. He will be barred from Israel indefinitely.