By Sophy Ridge, Political Correspondent
David Cameron has said terrorists should be denied a "safe space" to communicate with each other ahead of talks in the US.
The Prime Minister, who is in Washington to meet President Obama and discuss the need to intercept internet communications and the setting up of a joint cyber "cell" to defeat cyber attacks, said there was a "broad agreement" between the US and UK.
An unprecedented amount of intelligence co-operation and information sharing between the two nations is expected to be announced at the talks.
He said: "We shouldn't leave a safe space in which terrorists can communicate with each other.
"There is a broad agreement that we need to have powers, in extremis, to intercept communications between terrorists. That is what America does today. It is what Britain does today.
"We share the intelligence and information between us and this has saved countless lives, not just in Britain and America but in other countries as well.
"We must go on sharing that information, both acting under our own legal systems, the legal system in America is different to the one here."
A cyber cell of British and American intelligence agents will be created to defeat online attacks in a deal set to be struck between the PM and Mr Obama.
Under the plans GCHQ and MI5 would join with the National Security Agency (NSA) and FBI to create a rolling programme of simulated war games involving attacks on the City and Wall Street to test their resilience.
It comes after a report by GCHQ warned warned that British companies are under attack by hackers, criminal gangs and foreign intelligence services.
President Obama is strengthening the US response to cyberattacks in the wake of the hack on Sony Pictures.
Earlier this week, Mr Cameron said he wanted to give the security services access to encrypted communications online, which are used by social media companies such as WhatsApp and Snapchat.
However, reservations were voiced in the US.
Andrew McLaughlin, former internet adviser to President Obama, said: "Slow hand clap for David Cameron, whose proposal to ban encrypted COMMS (leaving UK wide open to hacking, spying etc) is colossally stupid."
A White House spokesman also stressed the need to balance security with a right to privacy, and the importance of keeping a "functioning relationship" with internet companies.
However, Mr Cameron said: "We face the same challenge in Britain and in America.
"We are free countries, free societies where we don't want to interfere with the privacy and civil liberties of our citizens but, in extremis, it has always been necessary, after going through the proper processes, to make sure that if terrorists are talking to each other or communicating with each other and are about to commit an outrage, it's always been necessary to try and intercept that and try to stop those bombs, those attacks, those murders taking place."
Mr Cameron said the British system had "huge safeguards against intrusion" into privacy.
He added: "I believe the British public will back me when I say that we shouldn't allow terrorists to talk to each other without being able, in extremis, with a warrant from the Home Secretary signed personally by her, to intercept those calls."
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