Taoiseach Leo Varadkar has said an orderly Brexit was in everyone's interest, but that the European Union needed to be prepared for the possibility that that would not happen.
Mr Varadkar said it was only the British government’s own red lines that prevent the post-Brexit relationship moving forward.
He was speaking at the British Irish Council summit in the Channel Islands.
Mr Varadkar said he was looking forward to seeing the British government's White Paper on the future relationship with the EU, which is due to be published next month.
The Taoiseach reiterated that there can be no deviation from the Northern Ireland backstop in Brexit talks.
He said a no-deal Brexit was more likely than it was a few months ago, but he still did not believe it was likely to come to that.
Brexit deal has to fully honour ‘Irish protocol’ agreed in December, Taoiseach says at British Irish Council pic.twitter.com/Map9PVzfjp
— RTÉ News (@rtenews) June 22, 2018
Mr Varadkar is holding bilateral discussions with Scottish First Minister Nicola Sturgeon and Welsh First Minister Carwyn Jones.
The main focus of the summit in Guernsey is Brexit and its implications, with further discussions on the current political situation in Northern Ireland.
Mr Varadkar was joined by Minister for Housing Eoghan Murphy, while Northern Ireland Secretary Karen Bradley and British Cabinet Office Minister David Lidington also attended.
Yesterday, President of the European Commission Jean-Claude Juncker said Ireland would come first in negotiations, as he told a joint sitting of the Dáil and Seanad that Ireland’s border was Europe’s border and it remained a priority.
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Uncertainties remain central to Brexit process
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Meanwhile, Ms Sturgeon and Mr Jones have called on British Prime Minister Theresa May to think again about pulling the UK out of the single market and customs union.
In a joint statement, the Scottish and Welsh leaders said quitting was not in the national interest and urged Mrs May to secure a Norway-style solution in the EU exit talks.
Mr Lidington insisted the UK government was committed to maintaining a good working relationship with the devolved administrations despite the "inevitable political noise" over Brexit and he urged the Scottish Government "to maintain their own side of that relationship".
Ms Sturgeon and Mr Jones said the European Union had been "very clear" that the UK Government's red lines meant the "only Brexit on offer is one which will deeply damage our economies and possibly jeopardise our security".
Additional reporting: PA