"There are many moving parts in it, there are many parties involved, and we're very confident we'll be able to move this forward", Hammond said as he arrived for a meeting with his European Union counterparts in Brussels.
The Chancellor said it was "inconceivable that we would walk away from obligations", regardless of the success or failure of the final negotiations.
'Progress on deal' ahead of May-Juncker Brexit talks
Sterling edged towards an eight-day low on Wednesday as growing uncertainty over the progress on Brexit negotiations weighed on the British currency with some investors unwinding long positions after a recent rally. Also UK PM May says that more consultation is needed.
They once ruled out paying an exit bill.
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"By removing the leadership at such a crucial phase in the negotiations, hopes of progress and/or transitional deal would collapse and would not be taken well by the public that already has a very negative view of the government's handling of the negotiations", they wrote in a note.
For anyone who slept through Monday, the deadline set by the EU27 for the United Kingdom to make "sufficient progress" on the three key article 50 issues - the financial settlement, citizens' rights and the Irish border - in order to move on to phase two of the Brexit talks passed - and in fairly dramatic fashion.
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European Commission spokesman Margaritis Schinas told reporters that they "stand ready" for fresh talks with May "at any moment in time when London is ready".
They are the future of European Union citizens, the financial settlement and of course the Northern Ireland border.
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"We have a common understanding on most of the relevant issues but there are some topics still open which will need further consultation and negotiations", Schinas said. The two sides will agree to maintaining "regulatory alignment" between Northern Ireland and the Republic after Brexit, the FT said.