In an interview with Catholic magazine 'Familiar Cristiana', the Nobel peace prize laureate claimed the UN was no longer up to the challenge.
He said it lacked the armies possessed by states and the conviction produced by religion.
Mr Peres argued that a United Religions Charter should be drawn up, which would make it clear that "cutting people's throats or committing mass killings, as we have seen in these weeks, has nothing to do with religion."
He also suggested that Pope Francis would be the best leader for this body, due to the fact that his moral authority is widely respected.
The pontiff has reportedly listened to the suggestions, however there has been no official response to the idea from the Vatican.
Vatican spokesperson, Father Federico Lombardi, has demonstrated that the Vatican already has departments promoting inter-faith dialogue and peace.
International Lawyer and Church, Dr Harry Hagopain, tells Premier he thinks Mr Peres "has two aspects to him":
"One: He's a very hard-nosed politician, and the other one is the visionary dreamer.
"And it is nice to dream, but it's also nice to test those dreams out first."
He explained why he doesn't think it would be feasible: