Michael Gove also said, however, the best course of action would be to follow Prime Minister David Cameron's plan to renegotiate powers, lead Europe to the changes it needs – and then put the issue to the public in a referendum, the BBC reported Sunday.
Gove is so far the highest-ranking Conservative in London to publicly comment on the possibility of Britain's leaving the EU, the BBC said.
"I am not happy with our position in the European Union but my preference is for a change in Britain's relationship with the European Union. Life outside would be perfectly tolerable, we could contemplate it, there would be certain advantages," said Gove.
Cameron has committed to a referendum on a British EU exit in 2017, in the event the Conservatives win the next election, the BBC reported.