Speaking at an event at the Institute of Economic Affairs, attended by a number of high profile British members of parliament (MPs), Mr Davis was asked on stage for his prediction on the trajectory of the Brexit process, to which he allegedly replied that he thinks London will buckle under the "irrational fear" of a "no deal" Brexit.
Sky News reported that Davis sullenly said: "The fear of no deal, I think — we haven't had a chance to talk about it much — but I think that's an irrational fear of no deal or [a] WTO [World Trade Organization] deal."
"Terror will win. That will win and there will be a deal," he allegedly added.
Steve Baker, a former Brexit minister who was also in attendance at the conference could reportedly be heard whispering to Davis, "don't say that."
Yet, Mr Davis — who resigned from Prime Minister Theresa May's cabinet in July 2018 in protest of the so-called 'Chequers proposal' — hedged his bets by saying that while a deal between Britain and the EU is likely to be struck, it could be torn straight back down again in parliament. "It may take a few passes, there may be a deal passed in Brussels and fails in Westminster," Sky reported him as saying.
Davis' comments come amid widespread reports that a cross-party alliance between pro-EU Conservatives, Labour and the Scottish National Party is being formed to ensure a referendum — often slated as a 'people's vote' — on the terms of any Brexit deal negotiated by Miss May.
However, May has continued to rule out a second referendum and a general election, saying that the latter "is not in the national interest."
Negotiations are expected to kick-start again after British MPs vote later in the week on the ruling Conservative party's latest budget announcement. A summit of European leaders will be held in December, which is apparently seen by Brussels as the moment of truth for whether or not a serious Brexit deal can be agreed.