"We still have time to negotiate but we're now waiting on what the prime minister proposes," Merkel said, stressing that she very much regretted the parliament's no vote.
SEE ALSO: 'What a Brexshit!': How Germany is reacting to the Brexit deal defeat
"I very much regret that the British lower house last night rejected the agreement," she said.
"We believe it is up to the British side, as the prime minister has announced, to tell us what happens next.
"We want to limit the damage, and there certainly will be damage..., as much as possible.
"That's why of course we will continue to pursue an orderly solution. But we are also ready in case there is no such orderly solution."
A huge majority of UK parliamentarians rejected Theresa May's Brexit deal on Tuesday evening, leaving the government's plan for the UK's exit from the EU in tatters and the future of 1.2 million Brits in Europe shrouded in yet more doubt.
More than two thirds of MPs voted against the Brexit deal, known as the Withdrawal Agreement.
The numbers represented a crushing defeat for the PM: 202 voted in favour of the agreement but a staggering 432 MPs voted against.
SEE ALSO: Brits in Europe demand to be spared from Brexit 'train crash' after May's deal rejected
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