According to the report, Dagan requested another year as head of the intelligence agency but was refused.
A source close to Dagan told Reuters earlier this year that the Mossad chief would not step down before his term is finished because resignation would be tantamount to taking responsibility.
Dagan faced international criticism after the January assassination of the Islamic Resistance Movement Hamas commander Mahmoud al-Mabhouh in Dubai, which was widely believed to be carried out by Mossad agents using forged foreign passports.
The Dubai police chief called for Dagan's resignation, and a Mossad official was expelled from Britain, while Ireland and Australia expelled Israeli diplomats over the affair.
River to Sea Uprooted Palestinian
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