"In order to stop and overcome the Islamic State, we have learnt since 9/11 that there must be cooperation between intelligence agencies from across the free world, a sharing of experience and operational cooperation," he told public radio.
The Islamic State (IS) group is at the forefront of a sweeping militant assault that has overrun swathes of Iraq and holds significant areas of territory in neighbouring Syria.
US President Barack Obama on Friday called for a broad coalition to defeat the IS fighters and he is to chair a key UN Security Council session on the threat on September 24.
Asked about the proposed international coalition, former military intelligence chief Amos Yadlin indicated Israel would likely share its intelligence with its allies.
"The intelligence that we gather in the Middle East - which deals with threats from Iran, (Lebanon's) Hezbollah, what's happening in Syria, terrorist organisations in Sinai and the Gaza Strip - is of very good quality and we share it with our allies," he told the radio.
Last week, Yaalon adopted a recommendation by the Shin Bet internal security agency and designated both the Islamic State and al Qaeda affiliated Abdullah Azzam Brigades as an "illegal organisation" under Israeli law.
The move allows for legal measures to be taken against both organisations as well as anyone found to be supporting or financing them.
Last week, IS released a video showing the beheading of US journalist Steven Sotloff, who also reportedly held Israeli nationality, in the second such execution of a US journalist within a fortnight.
The Abdullah Azzam Brigades is a Lebanese group linked to al Qaeda which periodically claims rocket fire on Israel.
COMMENTS
Comments are moderated and generally will be posted if they are on-topic and not abusive.
For more information, please see our Comments FAQ