The UK wants a Brexit free trade deal with the European Union but is prepared for a no deal scenario, British Transport Secretary Grant Shapps has said.

Britain left the EU on 31 January and its relationship with the bloc is now governed by a transition arrangement that keeps previous rules in place while the two sides negotiate new terms.

Negotiators remain deadlocked on fishing rights, the deal's governance, the European Court of Justice's role and so-called level playing field guarantees, according to The Telegraph newspaper.

Britain is pursuing trade deals with other countries and setting up its own sanctions regime, and has previously insisted it should not have to sign up to the bloc's standards.

A spokesman for British Prime Minister Boris Johnson said yesterday Britain will continue to engage constructively with EU in talks on a future relationship, but that London is not willing to give up its rights as an independent state.

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Britain and the European Union resumed talks yesterday, with the clock running down to a year-end deadline for a new post-Brexit deal.

The latest round of negotiations take place over three days in London, with stalemate in key areas stoking fears of a no-deal outcome.

After the coronavirus pandemic combined with the two sides' entrenched positions to stall progress, London and Brussels last month launched five weeks of intensified negotiations.

Mr Johnson in June vowed to add "a bit of oomph" into the gridlocked process, and predicted talks could conclude as early as this month.

But several face-to-face sessions since then have yielded few signs of compromise, and the two sides remain far apart on various issues, with only two further rounds of talks left.

Britain steadfastly refuses to extend the transition period and insists it will not let the negotiations "drag on" towards the end of the year.