UK Prime Minister Boris Johnson will travel to Brussels this week to meet European Commission President Ursula von der Leyen in a last ditch effort to salvage a post-Brexit trade deal.
It comes after a 90 minute phone call between the two leaders failed to produce a breakthrough.
In a joint statement, they said the conditions for a deal were “not there”.
“Significant differences” remained on fishing, business competition rules and governance of any deal, they added.
“We asked our chief negotiators and their teams to prepare an overview of the remaining differences to be discussed in a physical meeting in Brussels in the coming days,” the leaders said in their statement.
A senior UK government source has warned that a deal may not be possible, after the phone call between the PM and the European Commission president.
“Talks are in the same position now as they were on Friday. We have made no tangible progress,” the source added.
“It’s clear this must now continue politically. Whilst we do not consider this process to be closed, things are looking very tricky and there’s every chance we are not going to get there.”
EU chief negotiator Michel Barnier and his UK counterpart Lord Frost have been locked in intensive talks for the past week, as the deadline for a deal looms.
The two negotiators will meet on Tuesday to draw up a list of the outstanding differences between the two sides. EU leaders are meeting for a summit in Brussels on Thursday.
If an agreement is not reached and ratified by 31 December, the UK and EU could introduce import charges on each other’s goods.
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