"I don't think that a military intervention against Iran's nuclear installations should be necessary in the short term," Halutz told army radio.
"There is no threat to the existence of the state of Israel as long as Iran does not possess nuclear arms."
Israeli politicians and military commanders have recently stepped up warnings about Iran, which the Jewish state and the United States accuse of trying to develop a nuclear arsenal. Iran denies the charge, saying its nuclear programme is merely designed to meet energy needs.
Israeli fears were heightened when Iranian President Mahmoud Ahmadinejad in October called for the Jewish state to be "wiped off the map."
Halutz however said he did not believe Iran would actually complete manufacturing a bomb "before the start of the next decade." He said that the regime in Tehran had "decided to obtain these (nuclear) weapons".