The Prime Minister said he welcomed the statement issued by German Chancellor Angela Merkel and French President Francois Hollande at the European Union summit in Brussels calling for talks by the end of the year.
Senior German officials said yesterday the US talks with the White House and NSA about the allegations, including how Mrs Merkel's mobile phone was allegedly monitored, would take place shortly and include heads of its foreign and domestic intelligence agencies.
Mr Cameron said: "The leaders of the European Union issued a good and sensible statement last night about this matter and I agree with that statement."
He refused, however, to comment on any involvement by Britain's GCHQ spy agency in the surveillance of EU countries, saying only that it operated within a proper legal framework.
"I am satisfied that our intelligence agencies are properly governed, properly run, act under law and are subject to parliamentary scrutiny," he said.
He did indicate however that unlike Mrs Merkel, who has challenged President Barack Obama over claims the NSA tapped her mobile phone, he had not been targeted in that way.
A spokesman for the National Security Council has said it did not monitor Mr Cameron's communications and had not done so in the past.
Mr Cameron launched a blistering attack on former US intelligence operative Edward Snowden, and the newspapers reporting his leaks, which he said had made it "a lot more difficult to keep our countries and our peoples safe".
The Guardian has published a series of stories based on the information contained in the Snowden files, including disclosures about GCHQ's Tempora internet surveillance system.
Mr Cameron, asked whether the Tempora system had been used to monitor Italian communications, strongly defended the security services and claimed those exposing their techniques were "helping our enemies".
He also paid tribute to the UK's spies, saying it was important to remember the work they did without the acknowledgement enjoyed by other public servants.
The European Council has been overshadowed by the dispute, with both chancellor Merkel and president Hollande demanding change in the US approach.
Mrs Merkel said: "It's become clear that for the future, something must change - and significantly.
"We will put all efforts into forging a joint understanding by the end of the year for the co-operation of the (intelligence) agencies between Germany and the US and France and the US, to create a framework for the co-operation."
Britain and the US - along with Canada, Australia and New Zealand - are members of the so-called "Five Eyes" group, who share signals intelligence and are supposed not to spy on each other.
The Prime Minister said: "I was very struck by my colleagues how they don't want some breach between the EU and the US; they want a good partnership, good trust and good relations."