Downing Street has said the trade talks between the UK and EU "are over" and has blamed the bloc for the failure in getting a trade deal before the end of the ransition period.
The Prime Minister's official spokesman said this afternoon that the EU "has effectively ended them by saying that they do not want to change their negotiating position."
He added: "The EU can either fundamentally change its position or we can leave on Australian terms."
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'Australian terms' is the same as saying the UK will end without any trade deal with the EU, as the country does not have an agreement with the bloc.
Instead, it relies on defaults set by the World Trade Organisation, although some agreements are in place for certain goods.
The spokesman continued: "As I said, the EU effectively ended the trade talks yesterday. Only if the EU fundamentally changes its position, will it be worth talking.
"There are now only 10 weeks until the end of the transition period. [The PM's] view is that given the EU has refused to negotiate...in the last few months, given that the summit thats just taken place appears to explicitly rule out a Canada-style deal, he thinks we now need to get ready for leaving on Australian terms on January 1."
Michel Barnier, the bloc's chief negotiator, was due to visit London next week however the spokesman said there was now "no point".
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He explained: "There is only any point in Michel Barnier coming to London next week if he's prepared to discuss all of the issues on the basis of legal text in an accelerated way without the UK being required to make all of the moves, or planning to discuss the practicalities of areas such as traveling and haulage.
"If not, there is no point in coming."
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