Arguing that Pakistan will "shamelessly" deny that Dawood is not there, Singh, in an interview to India Today channel, said if he has to brought back, then "other methods" will have to be adopted.
He said "other groups" can be funded and trained to undertake an operation.
Asked what was stopping Indian agencies to undertake such an operation, Singh said, "political determination and decision".
"The Prime Minister and the Home Minister will have to tell their agencies that this has to be done. Then this will be done," he said.
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Asked if he meant the way US undertook an operation in Pakistan to kill Osama, he said, "not exactly but something similar".
Singh's comments came just hours after Pakistan canceled the NSA-level talks with India. New Delhi was all set to present new evidence of Dawood's stay in the neighbouring country in the proposed meeting.
Singh hinted at the possibility of carrying out an operation in a third country. "Many people go outside Pakistan. That opportunity is there but our agencies need direction".
"A group was being trained to target Dawood but he had people in Mumbai police on his 'pay roll' who were alerted. The Mumbai police came saying there is a warrant against them. But I cannot say it is confirmed. I have just heard...I don't have evidence," he said.
The BJP leader strongly opposed talks with Pakistan saying that everyone in the world knows it is a "snake pit" which not only patronises terrorists "but also where terrorists are born".