Head of the German Intelligence Service (BND) Gerhard Schindler faced calls to resign on Friday after a media report claimed that the spy agency passed information about European interests to US National Security Agency (NSA), DW reported.

Government spokesman Steffen Seibert refused to comment on Schindler's status, choosing instead to say that Germany desired close cooperation with US intelligence services against terrorism.

In a statement, Merkel's office said it had "identified technical and organizational problems with the BND" and was "sending instructions on removing these."

German magazine Der Spiegel reported on Thursday on the BND helping the US' National Security Agency (NSA) in spying on European targets, including German interests. According to the report, one of the targets was Airbus, Europe's leading airplanes and defense manufacturer.