Germany's lower house of parliament will sever ties with U.S. telco Verizon in the wake of the NSA spying scandal.

Reuters reported on Friday that the Bundestag will end its contract as soon as possible. It was due to run until the end of the year.

It is just over a year since whistleblower Edward Snowden revealed that the NSA was harvesting the phone records of Verizon's domestic customers, and more than six months since he disclosed evidence that German chancellor Angela Merkel was among 35 world leaders under surveillance by the U.S. spy agency.

The revelations prompted Germany to review the security of its networks and overhaul its cyber-security strategy.

Friday's news comes a day after the government's interior ministry announced that the federal government is also cutting ties with Verizon.

The most sensitive information is carried by German incumbent Deutsche Telekom, but Verizon provided network services for a number of ministries.

According to Reuters Verizon insisted that its German unit, Verizon Germany, is a German company that abides by local laws.

Nonetheless, "the relations shown in the wake of the NSA scandal between foreign intelligence services and companies have shown the need for a high level of security for critical communications infrastructure of the federal government," said the German interior ministry, in a statement on Thursday.