Boris Johnson has said that a no-deal Brexit is now "very, very likely" as hopes of an EU trade deal fade.
The Prime Minister gave a gloomy assessment of the deadlocked trade talks ahead of Sunday's deadline for a decision on whether to press ahead with negotiations.
Mr Johnson made a last-minute dash to Brussels on Wednesday to meet European Commission boss Ursula von der Leyen, where they set a new cut-off point for the talks.
If a deal cannot be agreed by the end of the Brexit transition period, the UK will have to revert to tariff-heavy World Trade Organisation terms in trade with the EU from January 1.
Speaking to reporters on a visit in Northumberland, Mr Johnson said: "I've got to tell [you] that from where I stand now, here in Blyth, it is looking very, very likely that we will have to go for a solution that I think would be wonderful for the UK, and we'd be able to do exactly what we want from January 1.
"It obviously would be different from what we'd set out to achieve but I have no doubt this country can get ready and, as I say, come out on World Trade terms."
He said he was "hopeful progress can be made" but pointed to sticking points over fishing and a proposal by the EU to keep the UK tied to its standards.
It comes as Ms von der Leyen told EU leaders “the probability of a no deal is higher than of a deal”, an EU official told Reuters.
She also admitted “positions remain apart on fundamental issues" at a press conference in Brussels.
Both sides would decide on Sunday "whether we have conditions for an agreement, or not", she said.
Ms von der Leyen added: ”One way or the other, in less than three weeks, it will be new beginnings for old friends.”
Chief negotiators Michel Barnier and Lord Frost are continuing talks in Brussels after Mr Johnson and Mrs von der Leyen agreed at a dinner on Wednesday to resume negotiations ahead of a decision on the future of talks this weekend.
Downing Street declined to deny reports that Mr Johnson had requested calls with the leaders of France and Germany but was rejected, after he said he would be willing to return to Brussels - or head to Paris or Berlin - to get a deal over the line.
The Prime Minister said yesterday that the Cabinet should "get on and make those preparations" for a departure on terms like Australia's, which does not have a trade deal with the EU.
But Malcolm Turnbull, who was Australia's prime minister until 2018, said Mr Johnson should be "careful what you wish for" as Australia's relationship with the EU is "not one from a trade point of view that I think Britain would want, frankly".
