Reports had suggested that deadlock over the so-called "backstop" arrangements for Ireland could be broken by permitting checks on exports from the mainland to the north, but not in the opposite direction.
He said: "The idea that the sort of proposals that are floating about from the European Union side, and indeed some officials on our side in Brussels, are necessary to prevent a hard border on the island of Ireland is of course complete rubbish".
British prime minister Theresa May's Europe advisor Olly Robbins is in Brussels this week as the two sides step up private negotiations in what some have called a "diplomatic tunnel" leading up to the summit.
The PM's official spokesman said that "real progress" had been made on a number of issues and the Government was determined to press on with talks.
"It would be the permanent annexation of Northern Ireland away from the rest of the United Kingdom and forever leave us subject to rules made in a place where we have no say".
"It is quite right now to expect the European Union to move in our direction and if they do match that ambition, if they do match that pragmatism, I am confident that we can still reach a deal", he said.
"The EU is treating us with naked contempt ..."
British Brexit Secretary Dominic Raab's office said in a statement that his rushed trip to Brussels to sit down with the EU's Michel Barnier was necessary.
"When will the Government take this key that has been handed to them, keeping us in the prison of this negotiation, and admit that we can leave into an FTA basis which will make this a proper independent country able to control its domestic regulations as well as its tariffs so that we can lead the world into a new era of free trade".
'We are going to have to carry this deal on our own benches.
"It's been a useful meeting today, we look forward to continued engagement over the next couple of days". "That's what we are focused on".
May's Conservative Party is also divided over how close an economic relationship to seek with the European Union after Brexit, leaving the prime minister in a precarious position.
EU Brexit pointman Michel Barnier and Martin Selmayr, the powerful head of the EU Commission's bureaucracy, briefed commissioners on progress just a week before the October 18 meeting that has been dubbed a "moment of truth".
He told reporters "a backstop can't be time-limited", adding: "The backstop will be there unless and until something else is agreed, but unless you have something to replace it well then the backstop needs to be there as an insurance mechanism".
- So, are plans more clear cut in Westminster? "The constitutional and economic consequences of such an approach would be catastrophic in the long run".
Following talks on Wednesday with European Parliament Brexit co-ordinator Guy Verhofstadt, she said: "The EU wants a one-way turnstile from GB and one-way rules from Brussels".
Although the absence of a deal has damped down expectations of ministerial resignations, eurosceptic Cabinet members are reported to be planning to meet over pizza on Monday evening to co-ordinate their stance.
Davis and former Foreign Secretary Boris Johnson resigned from May's Cabinet this summer to protest her Brexit blueprint. "Cabinet colleagues have discussions with each other all the time".
Negotiations had "intensified significantly this week" on trying to resolve the Irish issue, he said.
While Mr Barnier gave his speech, DUP leader Ms Foster stood outside the EU Parliament's Hemicycle reaffirming her commitment to her "blood red lines".
As many as 40 hardcore Tory Brexiteers will resist attempts to coerce them into supporting a Brexit deal with Brussels based on Theresa May's Chequer's plan, a former minister has warned.