The Jerusalem Post mobile website- Israel's intelligence agencies have people on the ground, spying on Iran, Mossad chief Yossi Cohen said at a closed session at the Finance Ministry Tuesday.

"We have eyes and ears, even in Iran," Cohen said.

The intelligence chief warned however that Iran is making significant inroads in the region.

"Undisturbed, the Iranians are coasting into the the Middle East with very large forces," he said.