Addressing the House of Lords European Select Committee, he admitted the negotiations would go Brussels’ way when it came to the divorce bill and other issues.
The Brexit Secretary has spent months locked in negotiations with Michel Barnier’s team over the UK’s settlement with Brussels.
But he told peers: “In the infamous, or famous, words of the European Union nothing is agreed until everything is agreed.
David Davis at the House of Lords European Select Committee
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“The withdrawal agreement on balance will probably favour the union in terms of the things like money and so on.
“Whereas the future relationship will favour both sides and will be important to both of us.”
His comments sparked uproar on social media, with users branding the Brexit Secretary’s negotiations a failure.
John Walters tweeted: “Why on earth would we pay more than legally required?
“Unless there is quid pro quo.If it favours EU then there should be no deal (& no money).”
David Davis and Michel Barnier
Nathan Oxley complained: “David Davis couldn't negotiate his way out of a cardboard box.”
Mr Davis said he believed Britain would agree some kind of basic deal with the EU, even in the "very improbable" eventuality that they fail to agree a trade deal.
He insisted, even if Britain failed to strike a formal trade deal, both sides were likely to have agreements in areas such as aviation that would allow planes to fly between Britain and the EU.
It is "not impossible, but very, very improbable" that Britain and the EU will fail to agree a Brexit deal, he said.
Mr Davis told the peers: ”Whatever happens we will have a basic deal without the bits we really want.”
And he revealed the next round of negotiations would take place in Brussels next week and he would seek an “intensification” of the discussions.
Mr Davis said he had invited EU chief negotiator Michel Barnier to London for talks this Wednesday, but it was not possible because the Brussels official had a prior engagement.
The EU team was also unable to accept a UK proposal for talks early next week, he said. Negotiators will therefore meet on Wednesday and Thursday of next week before Mr Davis travels to Brussels on the Friday.
Mr Davis told the committee that he was not surprised that leaders of the 27 remaining EU states had determined earlier this month that insufficient progress had been made in talks on the divorce deal for the second phase of negotiations, dealing with trade, to begin.
But he played down the significance of the decision, saying it provided time for the EU27 to prepare its position on the issues of trade and the transition to a new relationship in time for a European Council summit in December, when it is hoped they will give the green light to the second phase.
He said; ”We think that the outcome we got was one which keeps us on the timetable for an outcome in time for what we want.”