Hayden told CNN's "State of the Union" that Obama and Secretary of State John Kerry "hit the pause button, rather than delete button."
"Practically the worst of all possible outcomes, because now what you have here is a nuclear capable state," Hayden said.
"I think frankly that is Iran's bottom line, so what we're negotiating on is how much time we're putting between their nuclear capability and a nuclear weapon, a nuclear reality," Hayden said.
"And my fear is, this interim agreement, which doesn't roll back much of anything at all, becomes a permanent agreement," Hayden said.
The six-month agreement between the U.S. and other nations requires Iran to limit its nuclear activities in exchange for some relief on sanctions.
Hayden said the agreement contradicts the U.S. alignment with Sunnis Muslim and Israelis in the region, and that it will take "an awful lot of hand holding" to convince our allies this is the correct course of action.
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