The remarks come after US-backed Arab dictators were swept from power by popular uprisings and revolutions in Tunisia, Egypt and Libya.
Speaking at the Institute for National Security Studies in Tel Aviv on Monday, Major General Eyal Eisenberg said the current revolutions in the Arab world could spread the Islamic radicalism, the Israel-based news website Ynet reported.
Eisenberg added that there is a possibility of “a multi-front war” and “the potential use of weapons of mass destruction.”
The Israeli commander revealed that “advanced weapons” had been brought into the Gaza Strip to be used against Israel, saying “the likelihood of an all-out war is increasingly growing.”
“We discovered a new weapon, and as a result of this, we instructed the public to hide under two roofs, rather than only one,” Eisenberg said.
The developments also come as Egypt's toppled regime under Hosni Mubarak served the interests of Israel by assisting and keeping silent on the killing of Gazans.
Egypt has imposed a blockade on Gaza since the democratically elected Hamas took control of the territory in 2007. Since then Israel has imposed a crippling blockade on the territory triggering a humanitarian crisis.
A major Egyptian political party, the Muslim Brotherhood (MB), has recently demanded that the country's Supreme Council of the Armed Forces takes action in breaking the siege of Gaza.
Egypt's political parties say the Gaza blockade serves the interests of Israel and the US and threatens regional stability and independence.
This is while Israeli officials have been repeatedly threatening to launch a fresh major offensive against Gaza.
They say such an onslaught could be even more destructive and deadly than the one at the turn of 2009, which killed over 1,400 Palestinians -- many of them women and children.