Mohammad Jafar Montazeri’s comments, yet to be confirmed by other agencies, were made at an event on Sunday.
Iran has seen months of protests over the death of a young woman in custody.
Mahsa Amini had been detained by the morality police for allegedly breaking strict rules on head coverings.
“The morality police had nothing to do with the judiciary and have been shut down from where they were set up,” he said.
On Saturday, Mr Montazeri also told the Iranian parliament the law that requires women to wear hijabs would be looked at.
Even if the morality police is shut down this does not mean the decades-old law will be changed.
Women-led protests, labelled “riots” by the authorities, have swept Iran since 22-year-old Amini died in custody on 16 September, three days after her arrest by the morality police in Tehran.
Her death was the catalyst for the unrest but it also follows discontent over poverty, unemployment, inequality, injustice and corruption.
