The UK and EU's technical teams are still engaged, and the European Commission's spokesperson confirmed Tuesday she does not recognise the tone struck by Merkel in her conversation with Johnson.
She said: "There are three things here: first off this administration is adamant they can not and will not accept the existing deal that the EU has put on the table and agreed with Theresa May because it contains an element of the United Kingdom staying in the customs union".
Riding a wave of British frustrations with the saga, Johnson is threatening to leave at any cost - with or without a withdrawal deal - on October 31.
Attorney General Geoffrey Cox reportedly told the Prime Minister he would quit if the Prime Minister did not request an extension after failing to agree a Brexit deal.
An earlier attempt by the government to shut down Parliament for five weeks was ruled illegal by Britain's Supreme Court because it had the effect of preventing legislators from scrutinizing the government's Brexit plans.
"The idea that the Prime Minister will break the law yet again is something that needs to be borne in mind here", he told reporters during a visit to a wind turbine facility in Southampton.
European Council President Donald Tusk expressed this assumption in a Twitter rant aimed directly at Boris Johnson.
A frustrated Tusk accused Britain of taking part in with "the trend forward for Europe and the UK" and not using a definite opinion of what the nation fundamental.
"Put those three things together, the big picture is now, whoever said what to whom and wherever it is now extremely unlikely that there will be a deal next week".
The German Chancellery would neither confirm nor deny the No.10 leak, but the Bundestag's foreign affairs committee chair, Norbert Rottgen, tweeted that there is "no new German position".
Mr Johnson sent new proposals to Brussels last week, with the key focus being on replacing the so-called backstop - the policy negotiated by Theresa May and the European Union to prevent a hard border returning to the island of Ireland - which has always been a sticking point. "It also made clear that they are willing to torpedo the Good Friday agreement".
The 1998 Good Friday Agreement effectively created an invisible border between north and south, satisfying republicans who want a united Ireland and unionists who want to keep the status quo.
But extraordinary of the focus is transferring to what occurs if the Brexit talks are formally pronounced pointless.
Tusk, whose council represents the leaders of European Union member states, was reacting after Downing Street said Germany's Angela Merkel had warned Johnson that a deal is now "overwhelmingly unlikely".
The U.K. Parliament is set to be suspended later Tuesday so that a new session can begin next week with a major policy speech from Johnson's Conservative government.
"If this represents a new established position then it means a deal is essentially impossible not just now but ever", the Downing Street source said.