Deutsche Telekom has put all deals to buy 5G network equipment on hold, it said on Wednesday, as it awaits the resolution of a debate in Germany over whether to bar Chinese vendor Huawei on security grounds.

Europe's largest telco finds itself in a tight spot after senior lawmakers in Chancellor Angela Merkel's coalition rebelled and called for a ban on Huawei, which is a key vendor for its existing mobile networks in Germany and Europe.

At the same time in the United States, a $26 billion deal for Deutsche Telekom's T-Mobile unit to merge with Sprint hangs in the balance. More than a dozen U.S. states have sued to block the merger and a New York judge will hear the case on Dec. 9.

Washington imposed an export ban on Huawei in May and called on allies to follow suit, alleging the global network market leader's gear was insecure and that it was beholden to Beijing - concerns highlighted by President Donald Trump on Wednesday at a NATO summit in England.

While Huawei has denied the U.S. allegations, any sign that Deutsche Telekom is doing fresh business with the Chinese company risks undermining the U.S. deal's chances of getting over the finishing line.

"In light of the unclear political situation, we are not currently entering into any 5G contracts - with any vendor," Deutsche Telekom said in response to a request for comment from Reuters. "We are currently informing vendors of this."