Britain's chief Brexit negotiator David Frost admits there are significant ‘gaps’ in Brexit talks.

He confirmed there was a continued impasse but struck a more hopeful tone in his media appearance following intensified discussions.

He said an “agreement can still be reached in September” but called for the EU to recognise it was in discussions with an “independent state” adding that “considerable gaps remain in the most difficult areas”.

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He said: “Despite all the difficulties, on the basis of the work we have done in July, my assessment is that agreement can still be reached in September, and that we should continue to negotiate with this aim in mind.”

“We have made progress in areas like trade, trade of goods and services, transport, social security cooperation, EU programmes, participation and so on, which is good.

“But nevertheless big differences do remain, in particular with the familiar questions of the… so-called level playing field and fisheries policy.

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“We’re in a negotiation. Either outcome is possible. We will work energetically to get a deal but it is possible we won’t reach one.”

Speaking at a press conference on Thursday, Mr Barnier warned the “time for answers is quickly running out”.