Sterling hits two-week low as traders focus on Brexit talks
However, she claimed her reference to the need for a "smooth and orderly" Brexit in an earlier speech at Lancaster House in January made clear that this was what she had in mind.
The EU has drawn fire from Britain over its insistence that in order to have the strategic rock included in a transition agreement Britain needs to discuss the issue directly with Spain and a document, due to be published on Wednesday, is expected to confirm Brussels' stance on the issue, according to The Guardian.
Pressed by SNP MP Angus MacNeil on whether she had been forced to "beg" for a transition period, Mrs May told the Commons Liaison Committee: "I haven't begged the European Union for two more years".
May insisted to British lawmakers on Monday that the transition is necessary as it would provide continuity for businesses and individuals until the future relationship could be resolved.
He said that the deadline of December 31, 2020 was "logical" as it would avoid the complications derived from the United Kingdom still being subject to the bloc's rules and obligations once the EU's next multi-annual budget kicks in on January 1, 2021, Efe news reported.
"But the real difficulties ahead lie when the British will ask for special system of regulatory alignment - they won't get it", he said.
Mrs May responded to that point at PMQs today, saying: "We are not going to exclude Gibraltar from our negotiations from either the implementation period or the future agreement".
There were fears that forcing European Union banks to go through such an expensive process would put them off operating in Britain after March 2019, which could lead to London losing its crown as Europe's financial centre.
A BoE spokesman declined to comment on the report.
"We are pleased to see this development and it is now up to our politicians and regulators to make sure this is delivered", she added.
During a news conference in Brussels, Mr Barnier repeated the commission's stance that this must include accepting the jurisdiction of the European Court of Justice and allowing the free movement of people.
Mr Barnier warned that "logically speaking", when the United Kingdom leaves the European Union, it will no longer be covered by around 750 global agreements - including dozens of free trade deals - negotiated by the European Union while it was a member.