This concluded with both sides agreeing to hold "contacts at all levels" to "significantly intensify" the implementation of the Withdrawal Agreement agreed between the two sides past year.
The UK, increasingly frustrated by the EU's refusal to start text-based talks, called on the bloc to make the first move, with its housing minister saying Brussels only had to make "some relatively small but important changes".
"It is the case that my colleague David Frost was in conversation with Michel Barnier and I believe it is the case that Michel Barnier has agreed both to the intensification of talks and also to working on legal texts", Michael Gove, London's point man on the divorce deal, told parliament. In the absence of a deal, Britain and the European Union would trade on a barebones arrangement governed by World Trade Organization (WTO) tariffs and quotas, which would be disruptive at best and ruinous at worst for many businesses.
European Commission Vice President Maros Sefcovic repeated on Monday the EU still wanted a trade deal but not "at any cost" after British Prime Minister Boris Johnson said on Friday there was no point in continuing talks. A Downing Street spokesman described the negotiators' phone discussion as "constructive" and said the two sides have agreed to "remain in close touch".
"Unless something changes, unless they are willing to come back to us and show that degree of flexibility and maturity, we will leave - at the end of the year - the transition period, and trade on the sorts of arrangements that Australia has", Jenrick told Sky News.
Downing Street stressed that if no deal is in place by the end of the year - when the current transition arrangements end - the United Kingdom will not return to the negotiating table in 2021.
German Chancellor Angela Merkel said compromises on both sides would be needed.
"Make no mistake, there are changes coming in just 75 days and time is running out for businesses to act", said cabinet office minister Michael Gove.
The British government will this week urge businesses to speed up preparations to face the new customs rules. "A swift deal is the single most effective way to support recovery in communities across Europe", the groups said.
"The U.K. has noted the EU's proposal to genuinely intensify talks, which is what would be expected at this stage in a negotiation", he said.
Businesses are able to get a personalised summary of the actions they need to take at gov.uk/transition, the government said.
But on Sunday he said there was now a lesser chance of a deal and, asked if it was now less that 50%, he replied: "Well, I think it's less".
According to Šefčovič, Monday's meeting "demonstrated the political will to move at pace on both sides" on issues such as citizens' rights and the implementation of the Northern Ireland Protocol.
Speaking of the British leader, Ciolos said he was "very unpredictable".
He added: "If there has been movement, and there seems to be movement, then no-one would welcome it more than me but what we can't have from the European Union is the illusion of engagement without the reality of compromise".