German Chancellor Angela Merkel is seen before "Buergerdialog zur Zukunft Europa's" (Dialogue on Europe's future) in Jena, Germany, August 14, 2018. REUTERS/Fabrizio Bensch

JENA, Germany (Reuters) - Any agreement Britain reaches with the European Union on its exit from the bloc should be flexible and open to future adjustments, German Chancellor Angela Merkel said on Tuesday, as the risk of a no-deal Brexit increases.

Merkel told a “town hall” audience in the eastern city of Jena that she hoped the two sides would reach a negotiated divorce settlement instead of the disorderly Brexit that Britain and the EU want to avoid.

“Hopefully it will not come to an unregulated Brexit, but rather to a reasonable, negotiated agreement,” Merkel said. “The exit agreement cannot be static. If Britain wants to benefit (from the EU in the future) it must commit to re-accepting EU rules.”