Trade talks between the UK and European Union remain in limbo despite an offer from Michel Barnier to "intensify" negotiations.
Mr Barnier, the EU's negotiator, spoke to Boris Johnson's Europe adviser Lord Frost on Monday in an effort to revive the process.
But Downing Street said that unless there is a "fundamental change of approach" from Brussels, "there is no basis to resume talks".
Pictures of the week: October 18 - 24
Pictures of the week: October 18 - 24
A lantern seen at an installation in London's Chinatown ahead of the global debut of the new computer-animated musical adventure film Netflix film 'Over The Moon' (Photo by Dave Rushen / SOPA Images/Sipa USA)
A Sotheby's employee displays a Mughal gem set ivory horse head-hilted dagger, top and an Ottoman steel bladed ivory hilted dagger during a photo call ahead of the auction house's Islamic World, Legendary Timepieces and Middle Eastern Art sales, in London, Friday, Oct. 23, 2020. (Jonathan Brady/PA via AP)
People queue outside a bar in central Manchester, England, Thursday Oct. 22, 2020, as strict coronavirus restrictions on England's second-largest urban area, Greater Manchester, will start at midnight. (AP Photo/Jon Super)
Boris Becker leaves Southwark Crown Court in London, Thursday, Oct. 22, 2020. German tennis star Boris Becker is charged with 19 offences of failing to disclose money and property as part of bankruptcy proceedings. (AP Photo/Frank Augstein)
Cars at the border crossing between Northern Ireland and the Republic of Ireland, as gardai conduct checks asking people the reason for their journey. (Photo by Brian Lawless/PA Images via Getty Images)
A member of the back stage staff wears PPE as she helps a ballerina from Northern Ballet prepares in a dressing room at Leeds Playhouse, ahead of Northern Ballet's first live performances in more than seven months. (Photo by Danny Lawson/PA Images via Getty Images)
SHEFFIELD, ENGLAND - OCTOBER 22: Busker Tony Black turns his "smiley" face mask upside down to reflect the current mood as he entertains shoppers on October 22, 2020 in Sheffield, England. The county of South Yorkshire, which includes the city of Sheffield will move to Tier 3 'Very High' Covid-19 alert on Saturday. (Photo by Christopher Furlong/Getty Images)
A woman with an umbrella walking past street art in Camden, London. Weather warnings have been issued as Storm Barbara is expected to bring gale force winds and heavy showers to southern parts of the UK.
A lone punt on the River Cam in Cambridge. Weather warnings have been issued as Storm Barbara is expected to bring gale force winds and heavy showers to southern parts of the UK.
Lamp installations in London's UK's Chinatown, to celebrate the new Netflix film Over The Moon, released this Friday. Picture date: Wednesday October 21, 2020. Photo credit should read: Matt Crossick/Empics
SHEFFIELD, ENGLAND - OCTOBER 22: A man walks past a Covid-19 testing site on October 22, 2020 in Sheffield, England. The county of South Yorkshire, which includes the city of Sheffield will move to Tier 3 'Very High' Covid-19 alert on Saturday. (Photo by Christopher Furlong/Getty Images)
Britain's Prince William and his wife Kate the Duchess of Cambridge meet pharmacist Joyce Duah as they visit St. Bartholomew's Hospital in London, to mark the launch of the nationwide 'Hold Still' community photography project, Tuesday, Oct. 20, 2020. The Duke and Duchess of Cambridge on Tuesday met a small number of staff from the hospital, including pharmacist and photographer Joyce Duah and the two pharmacy technician colleagues she photographed writing on their PPE as they put it on, in a photograph that was selected to be in the set of 100 images taken during the coronavirus lockdown. (AP Photo/Matt Dunham, Pool)
Ben Cullen Williams art installation, A=V 2020 in London's Covent Garden, commissioned by Covent Garden and executed by MTArt.
Described as Otherworldly, celestial, toxic. The installation explores our relationship to the unknown and interstellar. A landing or possible escape. A portal into another world, reality altered. (Photo by Dave Rushen / SOPA Images/Sipa USA)
People walk past the empty Southern Pavilion cafe on Worthing Pier, West Sussex, on another sunny day as businesses in the UK continue to suffer from the Coronavirus pandemic.
LINCOLN, ENGLAND - OCTOBER 20: Plymouth Argyle's Michael Cooper during the Sky Bet League One match between Lincoln City and Plymouth Argyle at LNER Stadium on October 20, 2020 in Lincoln, England. (Photo by Andrew Vaughan - CameraSport via Getty Images)
Hospitality workers beat their pans to protest in Parliament Square in London, Monday, Oct. 19, 2020. Hospitality workers are demonstrating outside Parliament against tougher coronavirus restrictions and the amount of financial support given by the government to the industry.(AP Photo/Frank Augstein)
A Red Panda lays on branch at Paradise Wildlife Park in Broxbourne, Hertfordshire. (Photo by Dave Rushen / SOPA Images/Sipa USA)
A man wearing a face mask, required on public transport, rides a bus across Westminster Bridge in London, England, on October 19, 2020. (Photo by David Cliff/NurPhoto via Getty Images)
A view of the HS2 (High Speed 2) Rebellion encampment in Euston Square, London as they protest against the destruction of woodland due to the construction of the high speed rail link (Photo by Dave Rushen / SOPA Images/Sipa USA)
RETRANSMITTING CORRECTING THE INFORMATION ABOUT THE PROJECT FUNDING. Conservator Nigel Larkin begins work to dismantle a 40ft juvenile North Atlantic whale skeleton, the largest artefact within the Hull Maritime Museum's collection. (Photo by Danny Lawson/PA Images via Getty Images)
LONDON, UNITED KINGDOM - OCTOBER 19, 2020: Hundreds of hospitality workers take part in a demonstration in Parliament Square against the lack of scientific evidence behind the new coronavirus restrictions imposed by the government, such as the mandatory 10pm curfew, and a lack of sector-specific financial support for businesses in tier 2 areas, on 19 October, 2020 in London, England. Hospitality, which is the UKs third biggest industry and accounts for 10% of the nations employment, has been heavilly impacted by the restrictions with 100,000 jobs lost in the last three months.- PHOTOGRAPH BY Wiktor Szymanowicz / Barcroft Studios / Future Publishing (Photo credit should read Wiktor Szymanowicz/Barcroft Media via Getty Images)
Runners and riders circle at the start for The Follow Plumpton Racecourse On Instagram Novices' Hurdle at Plumpton Racecourse. (Photo by Alan Crowhurst/PA Images via Getty Images)
Covid-19 survivor Geoffrey McKillop. (Photo by Liam McBurney/PA Images via Getty Images)
Staff from Chopstix Noodle Bar hand out food parcels from a WWII tracked vehicle to self-isolating students from Manchester Metropolitan University at Cambridge Halls, part of the All Saints students living accommodation blocks, in Manchester. (Photo by Peter Byrne/PA Images via Getty Images)
A man cycles past anti-lockdown graffiti in Manchester, England, Monday, Oct. 19, 2020 as the row over Greater Manchester region's coronavirus status continues. Britain’s government says discussions about implementing stricter restrictions in Greater Manchester must be completed Monday because the public health threat caused by rising COVID-19 infections is serious and getting worse. (Peter Byrne/PA via AP)
A digital display above a dual carriageway calls on residents to follow coronavirus guidlines in Manchester, northwest England as the country battles a surge in coronavirus cases on October 19, 2020 (Photo by Paul ELLIS / AFP) (Photo by PAUL ELLIS/AFP via Getty Images)
Tottenham's Gareth Bale during the English Premier League soccer match between Tottenham Hotspur and West Ham United at the Tottenham Hotspur Stadium in London, England, Sunday, Oct. 18, 2020. (Neill Hall/Pool via AP)
LONGFIELD, ENGLAND - OCTOBER 18: (L-R) Lee Jackson of Kawasaki - Rapid Fulfillment team and Andrew Irwin of Honda Racing ride during the penultimate round of the Bennetts British Superbike Championship at Brands Hatch on October 18, 2020 in Longfield, England. (Photo by Ker Robertson/Getty Images)
LONDON, ENGLAND - OCTOBER 18: Demonstrators at the candlelight procession to remember victims of SARS and those assaulted by Nigeria Police gather at Trafalgar Square on October 18, 2020 in London, England. They echo the ongoing #EndSARS protest movement against Nigeria's Special Anti-Robbery Squad, whose officers have been accused of indiscriminate arrests, extortion, and extrajudicial killings. Nigeria's President Muhammadu Buhari recently disbanded the force, replacing it with a new division named SWAT (Special Weapons and Tactics), but the makeover has not placated the protesters. (Photo by Joseph Okpako/Getty Images)
BOREHAMWOOD, ENGLAND - OCTOBER 18: Becky Spencer of Tottenham Hotspur during the Barclays FA Women's Super League match between Arsenal Women and Tottenham Hotspur Women at Meadow Park on October 18, 2020 in Borehamwood, England. (Photo by Catherine Ivill/Getty Images)
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BACK TO SLIDE
The negotiations stalled after a meeting of leaders from the 27 European Union member states last week failed to produce a breakthrough.
Following his discussion with Lord Frost, Mr Barnier said the EU was prepared to continue talks across all subjects in the negotiations.
Crucially, he indicated the EU was prepared to discuss "legal texts" for a deal, something the UK has been pushing for.
A Number 10 spokesman said there had been a "constructive discussion" and the UK and EU teams would remain in close touch, but stressed that there was no hope of progress unless Brussels dramatically altered its position.
"The UK has noted the EU's proposal to genuinely intensify talks, which is what would be expected at this stage in a negotiation," the spokesman said.
"However, the UK continues to believe there is no basis to resume talks unless there is a fundamental change of approach from the EU.
"This means an EU approach consistent with trying to find an agreement between sovereign equals and with acceptance that movement needs to come from the EU side as well as the UK."
In the Commons, Cabinet Office Minister Michael Gove said it was "almost incredible" that the EU had so far refused to discuss legal texts but suggested the statement from Mr Barnier demonstrated the UK's "firmness" was producing results.
The atmosphere between the UK and EU soured after the European Council summit drew back from a commitment to hold round-the-clock talks in an attempt to get an agreement in place before the transition period expires at the end of the year.
Mr Gove told MPs: "The conclusions of that council reaffirmed the EU's original negotiating mandate, they dropped a reference to intensive talks that has been in the draft and they declared that all, all future moves in this negotiation had to be made by the UK."
He added: "There's no point in negotiations proceeding as long as the EU sticks with this position."
Mr Gove acknowledged that leaving the transition period without a trade deal could cause some difficulties.
"We recognise that there will be some turbulence, but we've not come so far to falter now when we are so close to reclaiming our sovereignty."
Downing Street stressed that if no deal is in place by the end of the year, when the current transition arrangements end, the UK will not return to the negotiating table in 2021.
EU leaders must also be committed to a resolution that "respects UK sovereignty and independence".
"If not, we will end the transition period on Australian terms," the spokesman said.
Business Secretary Alok Sharma admitted that the difference between a no-trade deal outcome and "Australian terms" is a "question of semantics".
The major stumbling blocks remain access for EU boats to UK fishing grounds and the "level playing field" to ensure fair competition – including any state subsidies that the Government might seek to give firms.
The developments came as the Government launched a "time is running out" campaign urging businesses to get ready for the end of the transition period on December 31, regardless of whether a trade deal is in place.
Businesses, increasingly concerned about the high tariffs of a no-deal exit, called on both sides to find a compromise for a deal.
Confederation of British Industry deputy director-general Josh Hardie warned of a "hat-trick of unprecedented challenges" from the first wave of coronavirus, its resurgence and "uncertainty over the UK's trading relationship with the EU".
Meanwhile the UK Internal Market Bill will face a challenge in the House of Lords, with opponents including senior Church of England bishops critical of measures allowing the Government to break international law and tear up elements of the Brexit divorce deal.
"We consider the Ukim Bill to be vital," the Prime Minister's official spokesman said in a message to peers.
"It was passed with the support of the House of Commons and we believe it is a necessary legal safety net to protect the integrity of the UK's internal market."
European Commission vice-president Maros Sefcovic, who held talks in London with Mr Gove about the Withdrawal Agreement, said the legislation was a "breach of trust" which had led to Brussels beginning legal action.
But he added: "This morning's discussions show that if we put our minds into it, I believe we can solve the issues in the framework of the Joint Committee."