EU's chief Brexit negotiatior, Michel Barnier, said talks are deadlocked over what the U.K. will pay to the EU when it leaves the bloc, Bloomberg News reported.
Barnier said the onus is on the U.K. to resume the negotiations, adding that decisive progress can be made on the issue of financial settlement in the next two months.
The EU's 27 remaining leaders are expected to decide against starting negotiations on a post-Brexit trade deal or on a transitional arrangement with the U.K. during their meeting in Brussels next week, leaving the Dec. 14 summit of EU leaders as the next milestone for talks to advance.
The U.K.'s Brexit secretary, David Davis, has said the two sides must talk about the future to provide certainty.
The impasse increases the chances of U.K. leaving the bloc without an agreement. Earlier this week, British Prime Minister Theresa May unveiled papers on future trade and customs arrangements that could still function after Brexit if the U.K. fails to reach a deal, saying Britain is preparing "for every eventuality" while hoping for the success of the negotiations.