Under the bill, the director would become the president's chief adviser on intelligence, but would only "monitor the implementation and execution" of intelligence operations that are carried out by the directors of the CIA, the FBI and 13 other agencies within the U.S. intelligence community.
Tenet previously warned against separating the head of intelligence from direct control of the CIA during congressional testimony and in appearances before the Sept. 11 commission.
But at an E-Gov Institute conference Wednesday, Tenet went public with his thoughts on the bill, which could come up for a vote next week.
"I don't think you should separate the leader of this country's intelligence from a line agency," Tenet said. "This person has to be leading men and women every day and taking risks."
A senior administration official echoed that position to the newspaper, saying the proposed director of national intelligence would only become "a new layer" in the process.