The UK government said on Wednesday that negotiations on a post-Brexit trade agreement with the European Union (EU) would restart on Thursday.

A statement from the Prime Minister Boris Johnson's office said EU chief negotiator Michel Barnier and his UK counterpart David Frost spoke and agreed to an initial phase of negotiations in London from October 22 to October 25.

"We are ready to welcome the EU team to London to resume negotiations later this week."

The negotiations would be on the basis of legal texts, a key demand of the UK, "across all negotiating tables concurrently".

"It is clear that significant gaps remain between our positions in the most difficult areas, but we are ready, with the EU, to see if it is possible to bridge them in intensive talks," the statement read in part.

The statement further said EU chief negotiator Michel Barnier had "acknowledged" the UK government's concerns in remarks to the European Parliament earlier on Wednesday.

In reiterating the EU's willingness to compromise, Barnier said a Brexit deal is still "within reach".

The statement also said the UK government still wanted a deal for when a post-Brexit transition period ends on December 31, but hinted it would walk away from the negotiations.

"As both sides have made clear, it takes two to reach an agreement."

The development comes days after Johnson threatened to walk away from the talks unless he got clarity that an agreement can be reached.

EU Council President Charles Michel had warned that time was "very short" adding that it was now up to the UK to decide whether talks should resume.

Instead of unfettered trade among EU member, a no-deal would leave both sides facing tariffs, custom duties and major regulatory burdens at a time when the pandemic has already created the worst economic crisis in decades.

(With input from agencies)