In recent times, the Fusion Barrier Distributions (FBD) determined from quasi-elastic scattering measurements have been employed to determine the hexadecapole deformation parameter β4 value precisely. In reactions where transfer channels are favourable, coupling due to transfermay affect the determination of β4. In order to study the role of transfer channels while determining β4 from barrier distribution, the quasi-elastic scattering measurements have been carried out in ¹⁶O + ¹⁷⁶Yb. Quasi-elastic scattering excitation function has been measured at backward angles with respect to the beam direction and barrier distribution D^qel(E) has been derived. Experimentally obtained barrier distribution has been compared with coupled channel calculations using CCFULL code. The effect of two neutron transfer and hexadecapole deformation has been studied using coupled channel calculation. χ² was calculated in a two dimensional space of β4 and neutron transfer strength P_tr. Without considering neutron transfer, χ² minimization of D^qel(E) was not possible and the best-fit was found over a small range of β4 and P_tr. At P_tr = 0.37, corresponding to minimum χ², the β4 of ¹⁷⁶Yb is determined to be 0.00 ± 0.015. This value of β4 is in agreement with that obtained from Coulomb excitation measurement.