In its report Thursday, Handelsblatt cited an internal Finance Ministry memo referring to the "high likelihood" of a disorderly Brexit on Oct. 31. The document reportedly suggests that while a change in British Prime Minister Boris Johnson's "hard negotiating position" is unlikely, he may use the upcoming G-7 summit in France to announce a breakthrough or collapse in talks with Brussels.
The paper calls for the EU's 27 remaining countries to toe their current line, which rules out renegotiating the deal reached with Johnson's predecessor Theresa May. The Finance Ministry declined to comment on the report.
Britain's fractious opposition politicians are giving a mixed reception to a plan by Labour Party leader Jeremy Corbyn to block a no-deal Brexit.
Prime Minister Boris Johnson has vowed that Britain will leave the EU on Oct. 31, with or without a divorce deal. Many economists say a no-deal Brexit will cause economic turmoil.
Corbyn has written to other parties saying he plans to call a no-confidence vote in Johnson's government when Parliament returns from its summer break in September.
He says Parliament should then unite behind a Corbyn-led "temporary government" that would seek a delay to Brexit and call a national election.
Some lawmakers welcomed the idea. But Jo Swinson, leader of the pro-EU Liberal Democrats, said Thursday that the idea was "nonsense" because Corbyn is a divisive figure.