Some Islamic leaders have expressed fears about proposed counter-terrorism laws, which are aimed at radicalised Australians fighting in overseas conflicts.
ASIO boss David Irvine said the government was not good at listening to the Muslim community and needed to work on communication.
He said he would like more members of the Islamic community to join ASIO.
"That will help us understand better, but this is an organisation that is designed to protect you and you should be part of it," he told Muslim community leader Jamal Rifi in an interview obtained by Fairfax Media.
Mr Irvine said he was "utterly outraged" by a report in The Australian newspaper and picked up by other outlets that suggested Australia was "fighting Islam".
Prime Minister Tony Abbott said he was disappointed that some Muslim leaders had "rather foolishly" boycotted meetings in Melbourne and Sydney, where he pitched the laws.
