Both sides on Friday called for the other to give ground in negotiations on a post-Brexit relationship after saying that the latest round of talks had ended with little progress being made.
Gove said issues such as fisheries and the so-called "level playing field" rules to ensure fair competition remained sticking points.
"We're making it clear to the EU we can't do a deal on those terms," he told Sky News. "But I am confident that there is a deal to be done. It just requires a degree of flexibility on the EU side which I'm sure that they will appreciate they need to show."