B777 FLT CREW AT EDDF ENTERED RWY WITHOUT ATC CLRNC BECAUSE OF PHRASEOLOGY CONFUSION.

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AS WE SWITCHED TO TWR TO DEPART RWY 7L AT EDDF; THE TWR CTLR APPARENTLY INTENDED FOR US TO TAXI UP TO THE RWY AND HOLD SHORT ON OUR CHOICE OF EITHER L; 'E;' OR L; 'W.' I DON'T REMEMBER THE TERMS HE USED; BUT I'M PRETTY SURE HE USED THE TERM 'LINE UP.' NOT ONE OF US IN THE COCKPIT HAD ANY DOUBT THAT WE WERE CLRED ON TO THE RWY. IN MY READBACK; I MENTIONED TAXIING ONTO THE RWY. I DON'T REMEMBER THE TERMINOLOGY I USED. AS WE TAXIED ONTO THE RWY; I MENTIONED TO THE CAPT AND RELIEF PLT THAT THERE WAS AN ACFT ON FINAL. WE ALL SAW IT AND WERE NOT CONCERNED AS THERE SEEMED TO BE PLENTY OF ROOM FOR US TO TAKE OFF AHEAD OF HIM. WE EXPECTED A TKOF CLRNC; INSTEAD; TWR ASKED US EITHER IF WE WERE HOLDING SHORT; OR HE ASKED IF WE WERE TAXIING ONTO THE RWY; I DON'T REMEMBER HOW HE WORDED THE QUESTION. WE SAID WE WERE ON THE RWY AND HE THEN SENT THE OTHER ACFT AROUND. I TOLD TWR THAT I HAD READ BACK OUR INTENTIONS TO TAXI ONTO THE RWY. HE SAID THAT THE END OF MY XMISSION HAD BEEN GARBLED. SUPPLEMENTAL INFO FROM ACN 583396: TWR ISSUED INSTRUCTIONS TO AN ACFT ON 3 MI FINAL TO GO AROUND BY THIS TIME. NOTHING ELSE WAS SAID AND TWR ISSUED US A TKOF CLRNC SHORTLY AFTER THE GAR. ALL 3 OF US HEARD A LINE UP PHRASE TO US FROM TWR WHEN WE CHKED IN.