The Malta airport authority said all emergency teams had been dispatched to the site of what it called an "unlawful interference" on the airport tarmac.
The plane's engines were still running today long after the aircraft landed at 11:32 AM (0402 IST).
State television TVM said the two hijackers on board had hand grenades and had threatened to explode them. All flights into Malta International Airport have been diverted.
Airport officials said the Afriqiyah Airways Airbus A320 flight from Sabha, with original destination Tripoli, had 118 people on board: Maltese Premier Joseph Muscat said that included 111 passengers, 82 men, 28 women and an infant.
Malta's National Security Committee was coordinating the operation, a government statement said.
Muscat's office confirmed that a negotiating team is on standby awaiting instructions from the prime minister, who is in a meeting with the National Security Committee.
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