The incident was allegedly sparked by a row over parking on Friday in Stamford Hill.
It is known for being home to a large population of orthodox Hasidic Jews.
The driver, who is black and speaks with a Caribbean accent, repeats the racist phrase several times when asked by the Jewish man.
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In the brief clip, the Jewish man can be heard saying: "One more time, say it again."
The driver replies: "Hitler was a great man.
"He knew what he was doing."
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“Hitler was a great man, he knew what he was doing”
Van driver
He adds: "You think you own the world. You don't own the world.
"This is Stamford Hill, this ain't Israel, okay?"
Stamford Hill Shomrim, a Jewish neighbourhood watch group, said they have passed the footage of the incident to the police.
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Rabbi Herschel Gluck OBE, president of the organisation, said in a statement he was appalled by the footage.
He added: "The words used in this antisemitic rant is absolutely abhorrent and disgusting.
"I am deeply shocked that a person can hold and feel free to express such despicable views."