Britain's government proposed the creation of a single market for goods with the European Union in what would be an ambitious ​reset of its post-Brexit ties with the bloc, but Brussels ‌has rejected the idea, British media reported.

The Guardian said the EU instead suggested Britain should join a customs union or agree to deeper economic alignment via the ​European Economic Area, both of which would require Prime Minister ​Keir Starmer to reverse his refusal to allow free movement ⁠of workers.

UK officials told The Guardian that the EU has not definitively ​rejected a single market for goods, and the idea was among options ​for discussion at a planned EU-UK summit expected in July.

A spokesperson for Britain's Cabinet Office said the government was negotiating "an ambitious package of measures" ahead of the ​summit, including a sanitary and phytosanitary deal for trade in food and ​drink and another on emissions trading.

The spokesperson declined to comment on the report in ‌The ⁠Guardian, which appeared late on Friday, and a similar story published by the BBC on Saturday.

Starmer's Labour government has talked increasingly about the economic costs of Brexit, and his finance minister Rachel Reeves said in March that ​London was ready ​to align with ⁠many EU business rules to lower the barriers to trade.

British voters decided to leave the EU in a ​referendum in June 2016.

Wes Streeting, who recently stepped down ​as ⁠UK health minister and is seen as a potential challenger to Starmer, has said that Britain should one day return to the bloc.

Another possible challenger, Manchester ⁠Mayor ​Andy Burnham, said on Monday he was not ​proposing that Britain consider rejoining the EU.

Starmer's grip on Downing Street is in doubt after poor ​local and regional election results.