Camden Council has admitted that a series of failures led to a book entitled Are English Jews responsible for 9/11? being available on the shelves of a library for the last two years.
Gillian Freedman, a member of Hampstead Garden Suburb Synagogue, discovered the book, by Devdas Pradesh and published in America, in Kilburn Library's modern history section.
"When I saw the title of this book I literally took a deep breath and reached for it, wondering what on earth I would find in its pages," she said.
"I was almost shaking when I checked the book out and began to read it. Within a minute, I knew that my suspicions were justified and that this was a naked antisemitic diatribe."
Mrs Freedman contacted Camden Council and discovered the book had been ordered by a member of the public more than two years ago. The purchase was approved by the library's stock officer, who has since left.
A council spokesman admitted that stock officer should have reported it to a senior officer and that the book should not have been on display.
He said: "We sincerely apologise for any offence that this has caused to the user of our libraries, and will remove the book from our stock when it is returned."
Mrs Freedman said she wanted the matter to be discussed by councillors.
"It is imperative that this matter is raised in a public meeting so that the public are aware that such a serious lapse of policy and judgement took place within the Camden library service," she said.