Defence Minister Jonathan Coleman said the language in the manual, which is used to train the military in security procedures, was "heavy-handed" and needed to be changed.
"My view is that the reference to investigative journalists should be removed from this order," he said in a statement. "It is inappropriate and heavy-handed."
The review comes after the Sunday Star-Times revealed that the manual, which was written in 2003, defined three "subversive" groups as a security risk -- hostile intelligence services, extreme organisations and investigative journalists.
Opposition defence spokesman Phil Goff said it was "utterly wrong and intolerable" for the military's top brass to display such paranoia about journalists, showing they did not understand the media's role in a democratic society.
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"The defence force leadership has confused national security with a desire not to be embarrassed by what investigative journalists might discover about any shortcomings on their part," he said.
"That is reminiscent of the Nixon White House and has no place in our political system."
Coleman said the defence force had told him there was no evidence that any such monitoring had occurred.
"(The military) has assured me that this is not something that they would regard as a legitimate practice," he said.
Goff said the situation raised further doubts about moves to expand the power of intelligence services so they can spy on New Zealanders, particularly after it was revealed that Internet mogul Kim Dotcom was illegally snooped upon before his arrest in January last year.
"After the Kim Dotcom debacle and revelations about activities of spy agencies in the US and UK, a wide cross-section of New Zealanders have no confidence in our intelligence agencies," Goff said.