The European Union has warned that Theresa May's Chequers plan is "dead" and is urging her to adopt a Canada-style deal favoured by Boris Johnson, according to Eurosceptic Tory MPs.

Michel Barnier, the EU's chief Brexit negotiator, "made clear"to MPs on the Brexit select committee that the Chequers plan is "not acceptable" during a meeting in Brussels.

MPs who were present at the meeting in Brussels on Tuesday said that Mr Barnier proposed an "alternative" post-Brexit plan based upon the EU's free trade deal with Canada.

Separately it emerged that Germany has started to prepare for a no deal Brexit by hiring new customs staff.

One German foreign official told Stuttgarter Zeitung: “The government is preparing for all possibilities related to (Britain's) exit.