Testifying before an EU parliamentary committee charged with investigating electronic surveillance, journalist Duncan Campbell, said that the FRA has shared access to communication cables in the Baltic Sea with the NSA.
Sweden is said to have the code name "sardine" in the collaboration, according to Campbell.
Reacting to the news, Birgitta Ohlsson, Sweden's minister for EU affairs, said that she had no prior knowledge of the extent of the collaboration.
"This has gone too far," she told Swedish Television
Foreign minister Carl Bildt confirmed that FRA collaborates with international partners, but discounted the testimony of journalist Duncan Campbell.
"It is no secret that we have the FRA. Everything they do is done in accordance with the law, and is correctly controlled and regulated," Bildt told the TT news agency.
Asked whether it is true that the USA has access to Swedish communication cables under the Baltic Sea, Prime Minister Fredrik Reinfeldt acknowledged that Sweden collaborates on intelligence with other countries.
"That has been the case for the entire period after World War II. "
While a member of the EU and no longer neutral, Sweden is officially non-aligned.