While Iran insists its nuclear programme is for power generation, Israel has backed US efforts to get other countries to intensify sanctions against Tehran.
Unlike their current operating satellites that use cameras to capture movement, the TECSAR uses a radar system.
Israel Aerospace Industries (IAI) confirmed the launch of the satellite in a statement.
"The TECSAR is the first satellite of its kind developed in Israel, and ranks among the world's most advanced space systems," IAI said.
Officials said the development and launching cost tens of millions of dollars.
Officials said it will be possible to view pictures from the device within two weeks.