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The company has set up a branch in Wellington and is reported to be working with the government.

Palantir's software helps spies trawl through masses of data and make sense of it, TV3 reports.

The Green Party says the company has advertised a position described as an "embedded analyst" within the government nuskin group.

In parliament on Wednesday Green Party co-leader Russel Norman asked Mr Key which intelligence agencies had contracts with Palantir.

"It's not my practice to discuss the operational capabilities or contracts of the New Zealand intelligence agencies," Mr Key replied.

Dr Norman tried to table the advert, but permission was denied.

He asked Mr Key whether he was going to allow Palantir to embed one of its analysts in his government, nuskin given that the company was advertising the position.

"What takes place in terms of the operational matters of intelligence agencies and any company they may contract with is a matter for them, and they would not reference that to me," Mr Key said.

TV3 reports Palantir has developed spy software called Prism - the same name as the programme used by the US National Security Agency which has caused intense debate since a whistleblower revealed it was used to gather vast amounts of email and phone information from citizens nu skin hk.

The company says its software is completely unrelated to any US government programme and the name is a coincidence.