A Brexit deal is "essentially impossible", a source for No 10 has said following a phone call between Prime Minister Boris Johnson and German Chancellor Angela Merkel.
Speaking to the Prime Minister about his Brexit proposals, Ms Merkel said a deal would not be possible without Northern Ireland remaining in the customs union, according to BBC reports .
The source said she claimed a deal would be "overwhelmingly unlikely" under Mr Johnson's current plans.
They told the BBC: "Talks in Brussels are close to breaking down, despite the fact that the UK has moved a long way."
The BBC's political editor Laura Kuenssberg said she thinks "any chance of a deal this month just died" as the news broke.
Previously, a government official told the BBC that the EU had shown no desire to "budge one centimetre" since the proposals were submitted and leaks from the European Commission revealed that it had major concerns over the UK's plans.
A government briefing, published by the Spectator last night, claimed that the deal "won't be revived" if it is not accepted this week.
It also suggested Mr Johnson would do "all sorts of things" to avoid asking for a delay to Brexit.
Former Tory cabinet minister Amber Rudd slammed the language used in the texts as "angry and desperate".
Mr Johnson has repeatedly said that, while he will abide by the law, Britain will leave the EU on October 31, although he has yet to explain how that can be achieved.
Under the terms of the Benn Act, passed in Parliament in September, Mr Johnson is legally required to request a further extension to Brexit, unless MPs back the terms of the withdrawal by October 19th or agree to leave without a deal.
Parliament is due to be prorogued today and will return on October 14th when the prime minister will deliver the Queen's Speech outlining his plans for the upcoming parliamentary session.
No-deal planning chief Michael Gove is also expected to deliver a speech in Parliament today.
