JERUSALEM -- The Israeli spy agency Mossad faces internal strife following the resignation of the second in command and extension of the current chief's term.

Israel Television's Channel 2 network broke the story Sunday evening regarding the agency's internal shakeup under the direction of current chief Meir Dagan.

On Monday, the headlines in the daily newspapers said it all. "The deputy head of the Mossad resigns, slamming the door behind him," a Maariv headline blared. The newspaper said it was the third time in as many years Dagan has been required to look for a new deputy. A Haaretz headline read: "Deputy Mossad chief resigns amid apparent internal squabbles."

A statement from the prime minister's office said the deputy head requested to "conclude his duties and leave office in the near future. Prime Minister (Binyamin) Netanyahu and Mossad Director Meir Dagan wish him every success and commend his long and fruitful service." The statement said Netanyahu told the ministers, the state of Israel owes the deputy head "a great deal."

Maariv said while the Cabinet voted last week to continue Dagan's leadership, some ministers insisted it would be the last extension.

Minister of Intelligence Dan Meridor praised Dagan's work but said other candidates should be prepared even if it means taking someone from outside, Haaretz said.