A leaked email reportedly sent to all civil servants in an unnamed “front line Brexit department” said no-deal operational planning had been suspended with “immediate effect”.
The decision was made by cabinet secretary Mark Sedwill, according to the email seen by Sky News.
Downing Street said departments were taking “sensible decisions” about the timing of their no-deal preparations following the agreement by EU leaders to extend the Article 50 withdrawal process to 31 October.
However the move is likely to infuriate Tory Brexiteers already angry at the latest delay to Britain’s departure from the EU.
The government has committed a staggering £4bn to no-deal preparations, but some MPs believe the six-month extension shows Theresa May was never prepared to countenance leaving without a deal.
“Officials have worked exceptionally hard to deliver our preparedness and deserve better,” he tweeted.
According to Sky, the email said: “In common with the rest of government, we have stood down our no-deal operational planning with immediate effect.
“This morning, at a meeting chaired by the cabinet secretary, we agreed that the objective is to ensure we wind down our no-deal planning in a careful, considered and orderly way.”
A Downing Street spokesman said: “As a responsible government, we’ve been preparing for over two years to minimise any disruption in the event of no deal.
“In light of this week’s developments, departments will make sensible decisions about the timing and pace at which some of this work is progressing given that the date we leave the EU has changed, but we will absolutely continue to make all necessary preparations.”