Boris Johnson has told people and businesses in the UK to 'get ready' for a no-deal Brexit.
It comes amid an apparent impasse in negotiations between the UK and EU.
After a summit of European leaders, European Council President Charles Michel said the bloc was "united and determined to reach an agreement, but not at any cost".
EU countries have agreed to "step up our work, at all levels and for all outcomes, including that of a no deal".
Fisheries and the subject of a 'level playing field' when it comes to state aid continue to be key sticking points in the talks.
Meanwhile, Mr Jonson accused the EU of wanting to continue "to control our legislative freedom, our fisheries, in a way that is obviously unacceptable to an independent country".
He claimed the bloc is not willing to offer the UK a Canada-style agreement.
He said: "Since we have only ten weeks until the end of the transition period on January 1, I have to make a judgement about the likely outcome and to get us all ready."
"And given that they have refused to negotiate seriously for much of the last few months, and given that this summit appears explicitly to rule out a Canada-style deal, I have concluded that we should get ready for January 1 with arrangements that are more like Australia’s based on simple principles of global free trade.
"Now is the time for our businesses to get ready, and for hauliers to get ready, and for travellers to get ready."
The UK's chief Brexit negotiator David Frost has reported told his European counterpart Michel Barnier not to come to London on Monday for talks about a trade agreement.
However, it's expected they will talk by phone.
