The bloc had squandered some of the progress made in negotiations because it had not been willing to intensify talks or produce detailed legal texts, Gove said.
"We hope that the EU will change their position; we're certainly not saying if they do change their position that we can't talk to them," he told the BBC's Andrew Marr on Sunday.
The latest talks broke down on Thursday (October 15) when the European Union said Britain needed to give ground.
MICHAEL GOVE: So we've drawn the conclusion that, unless their approach changes, that-- they're not interested in. In effect, they've drawn stumps on progress.
ANDREW MARR: I can't really tell whether this is saber-rattling or whether the door is still slightly ajar for more talks.
MICHAEL GOVE: It is ajar. We hope that the EU will change their position. We're certainly not saying that if they do change their position, that we can't talk to them. But I think it's only fair, also, that we communicate one other thing, which is that we are ready, if required, to leave on what have been called Australian terms. That's--
ANDREW MARR: But that's not called--
MICHAEL GOVE: --that's not going to be a picnic.
ANDREW MARR: --could be called--