Updated

The European Union's top Brexit negotiator says London must make clear how it wants to resolve outstanding issues arising from its departure from the bloc, and what relationship it wants going forward.

Michel Barnier says he is "working on a solution with Britain, not against them" but warned London's red lines are making deals similar to those between the EU and Norway impossible.

Barnier told an event in Munich on Friday the two sides are heading for an orderly Brexit, rather than a "no deal" sought by some anti-EU hardliners in Britain. But companies should use the time until March 2019 to prepare for the consequences of Brexit, many of which are being underestimated.

British Prime Minister Theresa May is meeting German Chancellor Angela Merkel later Friday in Berlin.