Details of snooping programmes involving the transatlantic allies have been leaked to the media by former US intelligence analyst Edward Snowden.
The revelations have sparked widespread outrage in Germany, where elections are due next month.
The agreement dates from 1968-9, and its cancellation is largely symbolic.
German Foreign Minister Guido Westerwelle said in a statement: "The cancellation of the administrative agreements, which we have pushed for in recent weeks, is a necessary and proper consequence of the recent debate about protecting personal privacy."
Germans' experience of mass surveillance under the Communist and Nazi dictatorships makes them particularly sensitive to perceived infringements of personal privacy, and the country has strong data protection laws.
The agreement cancelled on Friday gave the Western countries which had troops stationed in West Germany - the US, Britain and France - the right to request surveillance operations to protect those forces. » | Friday, August 02, 2013
