Boris Johnson has become "privately infuriated" with what he sees as the EU's attempts to frustrate a comprehensive free trade deal, the Sunday Telegraph can reveal.

The Prime Minister believes Brussels has unilaterally been "changing the terms" of the deal he agreed last year, when both sides set out to work towards an ambitious and deep trade agreement.

As a result the UK is no longer wedded to a Canada-style agreement, in what would be a major hardening in the Government's Brexit strategy.

Downing Street negotiators are now willing to pursue a much "looser" trade deal while simultaneously signing agreements with countries that make up 13 per cent of the world's GDP.

A government source said: "There are only two likely outcomes in negotiation - a free trade deal like Canada or a looser arrangement like Australia - and we are happy to pursue both.”

An Australian-style deal would allow both sides to cherry pick which areas of the economy they can agree on, and leave the rest to World Trade Organisation rules.

In a speech to business leaders, ambassadors and think tank representatives in London, he will say the UK must be treated as an "equal" and make clear there will be "no alignment, no jurisdiction of the European courts, and no concessions" with Brussels.

The speech will come just as EU leaders set out their draft strategy ahead of a tense 11 months of negotiations before the post-Brexit implementation period agreed between London and Brussels comes to an end on Dec 31.