The current set of talks are expected to concentrate on the extent to which the UK should be free to diverge from EU rules and regulations - such as employment rights or business subsidies.
Speaking on Monday, European Commission President Ursula von der Leyen said the UK has "either to play by our rules, because this is a matter of fairness for our companies... or the other choice is there is a price on it, and the price is border and tariffs."
In Tuesday's cabinet meeting, Mr Johnson said that ending talks on WTO terms, what he described as an Australia-style arrangement, "remained the most likely outcome" but that he was "committed to continuing to negotiate" on remaining areas of disagreement.
However Irish Taoiseach - or prime minister - Micheál Martin said the fact that talks are continuing is a "good sign" and that he had "greater hope" than last week that a deal could be reached.
On a visit to India, Foreign Secretary Dominic Raab said the UK has been "sometimes been too myopically-focused just on Europe" but added that the country was about to "regain control" to make new deals "where growth opportunities in the future will be".
This is one of the government's key pieces of Brexit legislation which aims to ensure goods can be traded within the UK in spite of differing standards between nations.
