Milchan, who has produced more than 120 films since 1977, reveals he was working for Israel's top espionage officials while negotiating Hollywood deals.
He tells Israeli investigative show Uvda, "Do you know what it was like to be a 20-something guy whose country decided to let him be James Bond? Wow! The action! That was exciting.
"I did it for my country and I'm proud of it."
The 68 year old also admits to using his Hollywood ties to help him with his spy life.
He continues, "When I came to Hollywood I detached myself completely from my physical activities to dedicate myself to what I really wanted - filmmaking. Sometimes it gets mixed up."
Reports of Milchan's involvement with the Israeli government have surfaced in the past, but this is the first time he has spoken out about his secret life.