Angela Merkel has said that there is "zero indication" that Britain will leave the EU without a deal and suggested that Tory eurosceptics calling for Theresa May to walk away from talks are "absurd".

The German Chancellor conceded that "both sides need to move" to break the Brexit deadlock and said for the first time that the "ball" is in the European Union's court as well as the UK's.

She rejected suggestions by senior Eurosceptics that Britain should now walk away from talks and say it is leaving the EU, describing the suggestion as "absurd".