Foley said decisions by local authorities to reject approvals for mosques will be "counter-productive" in fostering good relationships with Muslims in Australia.
"Often decisions by councils to block approvals for Mosques are counter-productive because then you see unregulated, underground prayer halls where you just don't know what's being preached," he told reporters on Monday.
He said more should be done to help Muslim leaders set up "above ground" places of religious worship that preach mainstream Islam.
Foley said he will work with Prime Minister Malcolm Turnbull and NSW Premier Mike Baird to combat radicalisation.
Source: 9news.com