Dagan also warned if the Islamic Republic's race for nuclear power is not interrupted, Iran will have its first nuclear bomb by 2014, Haaretz reported.
Speaking before the Knesset's foreign affairs and defense committee Tuesday, Dagan downplayed the demonstrations in Iran, saying they were only occurring in Tehran and one other province, Ynetnews.com reported.
The Web site said the alleged irregularities in the elections could happen in any democratic country, the Web site said.
"What matters is the position of Iran's supreme leader, Ayatollah Ali Khamenei, and that hasn't changed. The dispute is taking place among the Iranian elite," Ynetnews.com quoted Dagan as saying.
Reality in Iran is not going to change because of the elections, Dagan said.
"If the reformist candidate (Mir Hussein) Mousavi had won, Israel would have a more serious problem because it would need to explain to the world the danger of the Iranian threat, since Mousavi is perceived in the international arena as a moderate element … it is important to remember that he is the one who began Iran's nuclear program …," Dagan said.