A parole board rejected 70-year-old Katsav's bid for an early release that came up for discussion last Sunday.
"He expressed no regret and no sympathy toward the victims of his crimes," the justice ministry said in a statement.
The former Israeli President'slawyer said that his client intends to appeal the parole board's decision.
Katsav who was President of Israel between 2000 and 2007, was convicted in 2010 on charges of rape, commission of an indecent act by force, sexual harassment and obstruction of justice. He was jailed for seven years.
Ha'aretz quoted sources in the prosecution as saying that the former President deemed two counts of rape a mere "misunderstanding on the women's part" during the hearing on Sunday.
Katsav is said to have argued that he said he had a relationship with both the women, and because they were young and inexperienced they didn't understand the nature of a relationship and misinterpreted his acts.
He also reportedly said that he was willing to apologise for a misunderstanding, not for rape.
Assailing the main complainant, his lawyer in his argument reportedly said that she was currently married with children and therefore clearly hadn't suffered by his client's acts.
Katsav's continued imprisonment served nothing but vengeance, he is said to have emphasised.
The lawyer also reportedly accused the complainant of intentionally humiliating Katsav in her statements to the media and, like his client, claimed the two counts of rape amounted to a "misinterpreted hug".
The state has opposed Katsav's request on the grounds that he has never admitted to the offenses for which he was convicted and hadn't expressed remorse for his actions.
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