Germany's highest court ruled Wednesday that the state was allowed to spy on Internet communications where it could prevent loss of life or an attack on the country.

Chancellor Angela Merkel's left-right government welcomed the decision by the Constitutional Court and said it paved the way for more sophisticated security surveillance.

"It will be studied and used as a basis to draft a new law about how Internet surveillance can be conducted and will be conducted," government spokesman Thomas Steg said.

The court overturned a controversial law adopted in the western state of North-Rhine Westphalia in 2006 that gave intelligence agencies wide-ranging powers to hack into terror suspects' computers.

"The law violates the right to privacy and is null and void," the court said in a statement.

It added that Internet surveillance risked being a greater intrusion on privacy than telephone tapping and that it therefore had to close loopholes in legislation that did not take into account new technology and the central role it played in people's lives.

But it ruled that in principle introducing software onto suspects' computers to facilitate surveillance could be allowed in cases where "rights of supreme importance" were at stake.

The court said that in each case, the surveillance had to be approved by a judge, and that even then intelligence agencies would not be allowed to use the information if it pertains strictly to people's private lives.

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