Hypothyroidism can cause an increase in blood glucose levels. However, properly treated hypothyroidism usually results in whatever glucose levels would be normal for the individual.

Type II Diabetes is a lifestyle disease....as in, it is caused by things we do and/or don't do.

http://ndep.nih.gov/publications/PublicationDetail.aspx?PubId=72

Now, to know whether or not our hypothyroidism might be suspect, we'd need to know the reference ranges for your FT4/FT3 results.

You see, different labs use different ranges so your results can only be properly interpreted within the context of your lab's ranges.

The ranges are usually listed to the right of the result on the lab report.

Are you able to share them?

Also, are you dealing with any symptoms? They are just as important as your lab results.

Please list your labs and ranges for CD - she's great at interpreting labs.

Here's some information that won't fix your thyroid problem, but can fix your issue with diabetes (and certainly cannot hurt the rest of us):

http://www.youtube.com/watch?v=KLjgBLwH3Wc

I have Addison's disease which has caused my hypothyroidism and also has made me pre-diabetic. I've been pre-diabetic now for 6+ years and have controlled my blood sugar with diet and mild exercise. There's no reason that you have to go on insulin. You can control it with diet if you want to badly enough. But I know that at 6.5 the Dr has no choice, has to put you on insulin. I got up to 6.2 this last year and went organic. My number went down to 5.5 in 3 months. I still eat some sugar, probably more than I should, but I eat totally organic and gluten free because I have Celiac disease. Good luck.