"It is my responsibility to acknowledge the hostility that you have shown to the Jewish community and the anti-Semitic statements and actions you have allowed as leader of the Labour Party UK", Gabbay wrote.
Gabbay wrote that he chose to take the step ahead of Holocaust Martyrs' and Heroes' Remembrance Day, which recalls the horrors of antisemitism in Europe and Israel's commitment to combating antisemitism of all forms and in all places.
Meanwhile, the BNP's Nick Griffin said today he would back vote for the party because of Mr Corbyn's stance on Syria.
British Labour and Israeli Labor are sister parties and as Gabbay explains in his letter "have a long history of friendship", citing positive past relations with Prime Minister's Harold Wilson, Tony Blair and Gordon Brown.
"A very powerful signal of the anger and deep unease felt by Israeli Labour politicians at increasing antisemitism in the UK Labour party and Jeremy Corbyn's inability to understand his role allowing antisemitism to flourish and his unwillingness to properly tackle it".
Guardiola on Man City lapses during games: 'Maybe it's my fault'
Guardiola continued to stress that you have to take your chances at this level, adding: " Football is boxes at that level".
Mr Corbyn said he was "determined" that there would be "no racism in any form" within the Labour Party. I have informed all Labour Israel staff, Members of Knesset, and elected leaders of the Labour Party Israel of the suspension of ties with your office.
He tweeted yesterday: "IF he sticks to his guns then for first time in my life I will vote Labour". It has absolutely NO place in the Labour Party or in society.
Reacting to the suspension, Jennifer Gerber, director of Labour Friends of Israel, said: "We fully understand why the Israeli Labour party has chose to suspend relations with Jeremy Corbyn".
"He has failed to respond to their repeated offers of dialogue, including invitations to host him at Yad Vashem, Israel's national Holocaust Museum".
"Protesters in Downing Street called on the government to take a stand against Israel's killing of Palestinian civilians, who were demanding the right to return to their homes".