Former US Secretary of State Madeleine Albright said Sunday that Egyptian President Hosni Mubarak's time as leader should be over.

"I think there is never an indispensable leader," she told CNN's Candy Crowley. "There is a time with dignity that one needs to leave."

"I think that the Mubarak era -- my own personal opinion -- is the Mubarak era is over and the question is how to have a process that really works properly, that allows these various voices to come together and not disagree on some of the tactical aspects," Albright added.

The former Secretary of State also suggested that Israel needed to come to terms with the new reality in Egypt.

"Israel has every reason to be anxious," she said. "They knew -- have known forever they live in a very dangerous neighborhood and they clearly are concerned."

"But I think we all care about the security of Israel, and my own feeling is that it's very hard for Egypt to play the important role it has to if it is not moving into a -- this transitional phase and developing a democratic system that allows it to be a stable country," Albright continued.

"So I can see why Israel is anxious, but I think Israel has to deal with its neighborhood."