Britain is warning the European Union that it will only make its full divorce payment if there is a Brexit deal.

Brexit Secretary Dominic Raab told the BBC Thursday that Britain would pay "significantly, substantially" less than the already agreed upon 39 billion pounds ($51 billion) in the event no agreement is reached.

He said Britain would recognize its "strict legal obligations" to the EU but would not make the full payment.

He said this is "not a threat and it's not an ultimatum, it's a statement of fact."

The two sides are engaged in spirited negotiations over future relations once Britain leaves the EU bloc, which is scheduled for March 29.

Raab says he remains confident a deal will be reached.