Jeremy Corbyn has accused Theresa May of being "in denial" about the heavy Commons defeat inflicted by MPs on her Brexit deal.
The Labour leader asked the Prime Minister if she was ruling out "any form of customs union" with the EU as part of her attempts to secure a consensus.
Mrs May said she would be listening to the views of MPs to identify what could command the support of the Commons and deliver on the EU referendum result.
Speaking at Prime Minister's Questions, Mr Corbyn added: "My question was about the customs union. The Prime Minister seems to be in denial about that, just as much as she's in denial about the decision made by the House last night.
"I understand the Business Secretary (Greg Clark) told business leaders on a conference call last night 'We can't have no deal for all the reasons you've set out'.
"Can the Prime Minister now reassure the House, businesses and the country, and confirm that is indeed the Government's position that we can't have no deal?"
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Mrs May said Mr Clark was making the point that a deal is required to avoid a no-deal Brexit.
She went on: "There are actually two ways of avoiding no-deal - the first is to agree a deal and the second would be to revoke Article 50.
"Now, that would mean staying in the European Union, failing to respect the result of the referendum, and that is something that this Government will not do."
Speaking at Prime Minister's Questions, Mr Corbyn accused the Prime Minister of failing the country and said any other prime minister would have resigned.
He said: "This Government has failed our country - it cannot govern.
"It cannot command the support of most people and, facing the most important issue at the moment, which is Brexit, they failed again and lost the vote last night.
"Isn't is the case, Mr Speaker, that any other prime minister faced with the scale of defeat last night would have resigned and this country would be able to choose the Government that they want?"
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