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Prime Minister Ehud Olmert has decided to extend the Mossad Director Meir Dagan's term until the end of 2008, in order to allow Dagan to complete six years in the position.

Olmert announced his decision Sunday during a meeting with senior Mossad officials.

According to the Prime Minister's Office, Olmert is satisfied with Dagan's performance as director, and believes the Mossad as done a good job of meeting goals and the assignments it has been given under Dagan.

The PMO added that the prime minister "does not wish to cause shocks in processes that are essential to the country, which are under Mossad supervision."

Dagan fulfills a number of sensitive positions on behalf of the prime minister, including heading a special forum on torpedoing the Iranian nuclear threat.