Italy denied on Wednesday that Israeli spyware maker Paragon had cut ties with Rome following allegations that the Italian government had illegally used its technology to hack the phones of critics instead of criminals.

Italy's government denies that it has spied on journalists and migrant activists using spyware, but says it will cooperate with any investigation into “vulnerabilities” after at least seven Italian cellphones were apparently hacked with military-grade surveillance technology.

Israeli newspaper Haaretz later confirmed The Guardian’s report, adding that Paragon had terminated its deal with two Italian government agencies — a law enforcement agency and an intelligence agency — and disconnected their access to its spyware product called Graphite, according to the paper’s anonymous sources.

Relations with Parliament Minister Luca Ciriani on Wednesday denied reports that Israeli company Paragon Solutions had terminated its client relationship with Italy amid a furore over the alleged illegal use of its 'Graphite' military-grade hacking software to spy on journalists and activists in many countries,

Italy faced pressure on Friday to explain its relationship with Israeli spyware maker Paragon following reports that the company had cut ties with Rome over allegations that the government had used its technology to hack the phones of critics instead of criminals.

Italy said that Paragon has not terminated its contract with the Italian government, though reporting from 'Haaretz' suggested that the two had cut ties.