Britain's terror legislation watchdog says the country needs a new law on monitoring online communications, arguing a fresh approach is necessary to address the concerns of both law enforcement and privacy advocates.

The independent reviewer of terror legislation, David Anderson, on Thursday proposed a new blueprint for surveillance laws, saying that the existing framework satisfies neither security services nor privacy activists. The landmark 300-page report argues that a comprehensive and comprehensible law is needed to replace a multitude of current powers.

Anderson concludes existing laws have not kept pace with technology and are confusing. Among Anderson's suggestions is the creation of a new intelligence auditor to oversee novel, contentious and sensitive requests for interception of communications.

The government ordered the review as part of legislation fast-tracked through Parliament last year.