Joe Biden has shelved plans for a pact with Britain that could have paved the way for a full post-Brexit trade deal.

The US president has decided not to move forward with a “foundational” agreement prepared by the US Trade Representative’s Office, that would have included negotiations over 11 areas of trade and regulation, following opposition from his own party in the Senate.

Senate Democrats argued that it would not have provided sufficient protection for American workers, Politico reported.

The UK’s hopes for a free trade agreement (FTA) with the US date from before the Brexit referendum, and faced an early setback when Barack Obama told voters that Britain would be “at the back of the queue” for a deal if it left the EU.

But despite US support for an FTA in the early days of Donald Trump’s presidency in 2016, the chance of a deal has now fallen to “zero” under Mr Biden, the Government believes.

A “foundational” deal, drawn up by US officials, was thought to be a “roadmap” to a full FTA, and could have been agreed in negotiations starting at the end this year.

The prospect was discussed “in the margins” of talks on the Atlantic Declaration, an economic partnership statement released in June, but have since floundered, insiders said.

A UK Government source told Politico that the “vibes were quite tough” from the Biden administration, which is in turn under pressure from hard-line Democrats who are concerned about US manufacturing and agriculture.

Mr Biden is also concerned about the impact of any deal on his own “Bidenomics” policy, which attempts to protect American industry from imported goods.

Meanwhile, Downing Street has refused to move on its view that the UK will not accept chlorine-washed chicken – a major demand of US officials who hope to increase agriculture exports to the UK.

A spokesman for Ron Wyden, a Democratic senator who chairs the Senate finance committee, said: “Trade negotiations should be driven by substance. It is Senator Wyden’s view that the United States and United Kingdom should not make announcements until a deal that benefits Americans is achievable.”