BORIS Johnson has warned there is a “strong possibility” that the UK will fail to broker a trade deal with the EU as he urged the public to prepare for the end of the Brexit transition period.

The Prime Minister said the “deal on the table is really not at the moment right”, saying it would leave the UK vulnerable to sanctions or tariffs if it did not follow the bloc’s new laws.

He said the current proposals would keep the nation “kind of locked in the EU’s orbit”, but insisted negotiators would “go the extra mile” to get a treaty in time for December 31.

But Mr Johnson said he told his Cabinet yesterday evening to “get on and make those preparations” for a departure without a deal in place, or in an “Australian relationship” as he puts it.

“I do think we need to be very, very clear, there is now a strong possibility – a strong possibility – that we will have a solution that is much more like an Australian relationship with the EU than a Canadian relationship with the EU,” he said in an interview.

“That doesn’t mean it’s a bad thing, there are plenty of ways that we can turn that to the advantage of both sides in the conversation.

“But yes, now is the time for the public and businesses to get ready for January 1, because believe me there’s going to be change either way.”

The Prime Minister’s warning came after his dinner with European Commission president Ursula von der Leyen in Brussels on Wednesday failed to produce a breakthrough.

As the negotiators resumed talks, Ms von der Leyen set out no-deal plans for emergency legal agreements to keep planes flying to the UK and lorries crossing Europe.

The two leaders agreed that a decision on the future of the negotiations will be taken by the end of the weekend.

On Thursday, Ms von der Leyen said at a summit of EU leaders that negotiations are “difficult”.

In his first interview since the dinner, Mr Johnson said the UK will do “everything we possibly can” to get a deal when asked if it would be a failure of politics not to strike one.

He said he would be willing to return to Brussels, or head to Paris or Berlin to get a deal over the line, in a clear reference to French President Emmanuel Macron and German Chancellor Angela Merkel, who are seen as two figures adamant not to cave to British demands.

“We’re not stopping talks, we’ll continue to negotiate, but looking at where we are I do think it’s vital that everyone now gets ready for that Australian option,” Mr Johnson added.

“At the moment, I have to tell you in all candour that the treaty is not there yet and that is the strong view of our Cabinet as well.”

Earlier, Foreign Secretary Dominic Raab said that talks on a post-Brexit trade deal are unlikely to be extended beyond Sunday.

With the prospect of a no-deal outcome, Brussels has stepped up its preparations and held out the prospect of emergency agreements aimed at keeping planes flying and lorries crossing to the continent.

One of the contingency measures proposed by Mrs von der Leyen is for EU fishing boats to continue to enjoy access to UK waters during 2021, an area which has been one of the main sticking points in the trade negotiations.

Following Wednesday night’s meeting between the Prime Minister and Mrs von der Leyen, Mr Raab told the BBC on Thursday that, while he could not rule out a further extension in the talks process, it was important to have “finality”.

He said: “I think it’s unlikely but I can’t categorically exclude it.”

The Cabinet minister added that there has not been “enough pragmatism and flexibility on the EU side” and called for “substantial movement” from the bloc in order to seal a deal before the weekend is out.

“I don’t think we can keep going on at that pace without having some progress and some flexibility,” he said.

“Particularly from the UK side, we look at the differences on fairly key points of principle – fairly narrow in scope: we are talking about fisheries, level playing field commitments, the EU’s attempt to lock us in to their rules – we need to see substantial movement.”

Mrs von der Leyen set out the contingency plans for a series of mini-deals with time running out for the trade talks to reach a conclusion.

The UK leaves the EU’s single market and customs union at the end of the year and without a comprehensive deal there could be major disruption to trade.

The commission president said: “Negotiations are still ongoing.

“However, given that the end of the transition is very near, there is no guarantee that if and when an agreement is found, it can enter into force on time.”

“Our responsibility is to be prepared for all eventualities, including not having a deal in place with the UK on January 1, 2021. That is why we are coming forward with these measures today”.