Britain said eavesdropping by its GCHQ security agency was legal and no threat to privacy but would not confirm or deny reports it received data from a secret U.S. intelligence program.
British and U.S. newspapers have suggested that the U.S. National Security Agency handed over information on Britons gathered under the PRISM program.
In his first remarks on the subject, Foreign Secretary William Hague said the two countries did share intelligence but that GCHQ's work was governed by a very strong legal framework.
"The idea that in GCHQ people are sitting around working out how to circumvent a UK law with another agency in another country is fanciful," Hague told BBC TV on Sunday.
"It is nonsense".
Promising he would give a statement on the subject to the lower house of Britain's parliament on Monday, Hague said there was no threat to privacy or people's civil liberties.
He said was limited in what he could disclose.
"Of course we share a lot of information with the United States," he said, adding that the two countries enjoyed "an exceptional intelligence sharing relationship".
"But if information arrives in the UK from the U.S. it's governed by our laws."
Britain's two-party coalition government is under pressure to reveal more details of how Britain and the United States share intelligence after the reports, based on a leak, suggested such cooperation ran much deeper than was previously known.
"SNOOPERS' CHARTER BY THE BACK DOOR"
Critics said the collaboration amounted to a "snoopers' charter by the back door", accusing the security services of having much greater access to Britons' phone and electronic communications than allowed under British law thanks to the clandestine U.S. program.
But Hague said such fears were misplaced.
"Intelligence gathering in this country, by the UK, is governed by a very strong legal framework so that we get the balance right between the liberties and privacy of people and the security of the country."
Any intelligence gathering was "authorized, necessary, proportionate and targeted," he added, saying he personally authorized GCHQ intercepts "most days of the week".
There is public debate in Britain about giving the security services more powers to eavesdrop after a British soldier was brutally killed in London last month in an incident the government described as a "terrorist" attack.
Douglas Alexander, the opposition Labour party's spokesman for foreign affairs, welcomed Hague's promise to address parliament on the subject, but said he needed to be more open.