Obama, in a major policy speech, announced a series of measures to balance between civil liberties of Americans and people across the globe and meeting the US security and intelligence needs.
"Given the understandable attention that this issue has received, I have made clear to the intelligence community that - unless there is a compelling national security purpose - we will not monitor the communications of heads of state and government of our close friends and allies.
"We will not apologise simply because our services may be more effective. But heads of state and government with whom we work closely, and on whose cooperation we depend, should feel confident that we are treating them as real partners. The changes I've ordered do just that," Obama said.
Obama said Snowden's "sensational" revelations could impact US operations for years to come.
"The sensational way in which these disclosures have come out has often shed more heat than light, while revealing methods to our adversaries that could impact our operations in ways that we may not fully understand for years to come.
"I've instructed my national security team, as well as the intelligence community, to work with foreign counterparts to deepen our coordination and cooperation in ways that rebuild trust going forward," he said.
"We will appoint a senior official at the White House to implement the new privacy safeguards that I have announced today. I will devote the resources to centralise and improve the process we use to handle foreign requests for legal assistance, keeping our high standards for privacy while helping foreign partners fight crime and terrorism," he said.
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