File photo taken on Oct. 19, 2019 shows the European Union flag and the Union Jack flag outside the Houses of Parliament in London, Britain. (Xinhua/Han Yan)

"We agreed that the conditions for finalizing an agreement are not there due to the remaining significant differences on three critical issues: level playing field, governance and fisheries," the statement said.

"We asked our Chief Negotiators and their teams to prepare an overview of the remaining differences to be discussed in a physical meeting in Brussels in the coming days," it added.

British Prime Minister Boris Johnson and European Commission President Ursula von der Leyen said Monday that the conditions for finalizing a trade agreement "are not there due to the remaining significant differences" between the United Kingdom (UK) and the European Union (EU).

The leaders issued a joint statement after a phone call, the second in 48 hours, which ended with no major breakthrough.

"As agreed on Saturday, we took stock today of the ongoing negotiations," the two leaders said in Monday's statement.

"We agreed that the conditions for finalizing an agreement are not there due to the remaining significant differences on three critical issues: level playing field, governance and fisheries," the statement said.

"We asked our Chief Negotiators and their teams to prepare an overview of the remaining differences to be discussed in a physical meeting in Brussels in the coming days," it added.