The "slow progress" of Brexit talks means the EU is unlikely to be ready to open discussions soon about future UK relations, MEPs have been told.
Guy Verhofstadt said he did not believe enough ground had been made on exit issues such as finance and citizens' rights to move on to trade next month.
The MEP, who heads Parliament's Brexit group, suggested the two sides were not sharing information at the same rate.
He also claimed a transition deal could see the "status quo" for three years.
The third round of talks on the UK's exit are continuing in Brussels, with the chief negotiators on both sides - the UK's David Davis and the EU's Michel Barnier - due to brief reporters on Thursday.
In an update to the European Parliament, Mr Verhofstadt said there was "more and more recognition" on both sides the process of the UK's exit, due in March 2019, would need to be phased in to minimise upheaval.
The former Belgian prime minister said the terms of any transition period had yet to be discussed, but he said it could result in the "prolongation" of the UK's existing relationship for a period of up to three years.
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