CBS News reports that the FBI is investigating a possible Israeli spy in the Pentagon. (Thanks to all who emailed, including the nice person with the bogus Hotmail address who wrote “I dare you to post this!” along with some other forgettable comments.)

WASHINGTON (Reuters) - The FBI believes Israel has a spy at the very highest level of the Pentagon who may have sought to influence U.S. policy on Iran and Iraq, CBS News reported on Friday.

The Israeli embassy immediately denied the report.

“The FBI has a full-fledged espionage investigation under way and is about to … roll up someone agents believe has been spying, not for an enemy, but for Israel, from within the office of the secretary of defense (Donald Rumsfeld),” the network reported.

CBS News said the FBI believed it had solid evidence the suspected mole supplied Israel with classified material that included secret White House deliberations on Iran. The network described the spy as “a trusted analyst” assigned to a unit within the defense department tasked with helping develop the Pentagon’s Iraq policy. It said the analyst had ties to top Pentagon officials Paul Wolfowitz and Douglas Feith, both regarded as leading architects of the war on Iraq.

Asked about the CBS report, a spokesman for the Israeli embassy told reporters: “We categorically deny these allegations. They are completely false and outrageous.”

CBS said the spy was believed to have been passing secrets to Israel through intermediaries at the American Israel Public Affairs Committee (AIPAC), a pro-Israel lobby.