According to Tuesday's Financial Times, this is the first admission by a senior Serbian official since Mladic went into hiding 10 years ago.
"It is only logical that the security services know where Mladic is. They know if he is in Serbia, and they know if he is not. They are paid to know," Draskovic was quoted as saying. "Without that kind of protection, without that kind of network, it would be impossible for Mladic to be invisible," he added.
Draskovic's statements undermine Belgrade's long-held claims that Serbian officials do know where Mladic is hiding and that this is why they cannot arrest and transfer him to the Hague tribunal, according to the daily.
Draskovic has often criticised Serbia for lack of cooperation with the UN court. He has sharpened his rhetoric as April 12 approaches, when the European Commission is expected to decide whether to open or postpone stabilisation and association negotiations with Serbia, the Financial Times wrote.
The Commission is expected to decide by the end of the week if Serbia has progressed.
Draskovic was quoted as saying that Serbian President Vojislav Kostunica had not done enough. "If I were the prime minister, I would call the head of state security before me and ask him where Mladic is. If he said 'I don't know' I would fire him then and there."
He also said that Serbian security services could arrest Mladic "today, and he should have been arrested yesterday". He did not say whether he believed Serbian intelligence also knew the whereabouts of Bosnian Serb wartime leader Radovan Karadzic.