Andy Coulson has said he was "shocked" and "angry" when a reporter told him he had heard voicemails suggesting MP David Blunkett was having an affair.
The former News of the World editor told the hacking trial the MP was "a friend of the paper" and it was "a breach of privacy".
He had ordered any "investigation" into Mr Blunkett to stop, he added.
Mr Coulson, 46, denies conspiracy to hack phones and conspiracy to commit misconduct in a public office.
He is giving evidence at the Old Bailey for a third day.
It is part of the agreed facts in the case - not disputed by either side - that recordings of voicemails involving Kimberly Quinn, a former publisher of the Spectator magazine, were found in a safe at the News of the World.
Mr Blunkett had a three-year relationship with Ms Quinn.
The trial continues.
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