Margaritis Schinas, chief spokesman for the European Commission, said the focus of the talks was still on getting an agreement hammered out.
This is despite heavy criticism of the Theresa May’s Chequers proposals by EU leaders in Salzburg last week.
It led to ambassadors in Brussels circulating a document urging the remaining countries to up their contingency planning amid fears the UK will crash out without anything in place.
Mr Schinas dismissed as “horror stories” the reports about “no deal” Brexit preparations on the continent.
But he told reporters the bloc was at the same time "not abandoning" its duties when it came to preparing for any possible outcomes, including a no-deal Brexit.
He said there was no significant shift in expectations, adding: "We are ready for all scenarios. Keep calm and keep negotiating."
Mr Schinas then quoted European Commission President Jean-Claude Juncker, who said last week that executive was already well-prepared, and also: "Don't worry, be happy.”
It comes after the document shared across the remaining countries reads: "Preparedness work has to intensify in the months ahead at national as well as EU level, as uncertainty remains about the outcome of the negotiations and the ratification of a possible deal."
Transport, financial services and customs are seen as key areas where temporary legal acts will need to be brought-in to avoid a crisis situation, it has been reported.
But an EU spokesman played down the drama, saying: "Would you give me the opportunity to, sort of, suggest that we all collectively take a certain distance from the many horror stories that are being circulated.
"I think that we need some serenity, calmness, coolness to proceed with our work. We are in the business, as Michel Barnier [the lead negotiator] said, of dedramatising.
"We are working for a deal. That's what matters."
The commission again stressed talks could go on into November, beyond the looming EU summit on October 18.
Mr Schinas said: "Discussions are ongoing at all levels.
"We will have a situation to check where we are at the European council of October.
"And, as our leaders unanimously decided, we keep an option also for November should this become necessary."
He added: "We are ready for any scenario. And to repeat what the president said in Salzburg, don't worry, be happy."
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