Germany has drawn up plans that would see Britain relegated to a group of countries which would not be part of the core of a new European Union, according to reports.
According to a report in the Telegraph, a leaked memo from the German foreign office has revealed radical plans on how to tackle the crisis gripping the EU.
In the email, a new European body is proposed which would be able to take over the economies of struggling nations within the eurozone.
The EU's largest economy is also preparing for other European countries which are too large to be bailed out to default on their debts - effectively going bankrupt.
Ahead of a meeting between Angela Merkel, the German Chancellor, and Prime Minister David Cameron today, the Telegraph claims the email also reveals plans to relegate Britain to a new outer group of EU members who are not in the single currency.
Relations between the two nations are becoming more strained as the crisis worsens, with backbench MPs from the Conservatives calling for more powers to be given to Britain.
Some have called for a referendum on EU treaty changes, but Germany is expected to shout down such calls as it moves to tackle the economic crisis.
Earlier this week Germany called on Britain to do more to help rescue the eurozone by agreeing to a financial transaction tax. Source