Theresa May was warned today that Britain will automatically crash out of the EU next year if she fails to offer a workable deal to Brussels. 

Senior MEP Guy Verhofstadt said Britain's red lines in the negotiations were dramatically narrowing the options for a deal. 

He said he had backed Britain staying in the EU single market, the customs union or an existing associate membership model - but that all had been rejected in London. 

Mrs May used a press conference with German Chancellor Angela Merkel on Friday night to insist the negotiations were not a 'one way street'. 

Formal talks on the transition period are due to come to a head next month with a series of major obstacles still to be finalised.

He denied it was 'punitive' to talk of the need for Britain to accept the 'consequences' of breaking from EU rules. 

He said: 'It's your decision. 

Read more on dailymail.co.uk.