Daniel Kawczynski, MP for Shrewsbury and Atcham, accused the EU of not negotiating in good faith following the breakdown in talks last week.
On Friday, Prime Minister Boris Johnson said there was little point in holding fresh negotiations this week unless the EU moved its position.
Mr Kawczynski had praised the UK's chief Brexit negotiator for telling his EU counterpart, Michel Barnier, there was little point in him coming to London this week.
He also threw doubt on the validity of the EU Withdrawal Agreement, which had been ratified by the UK Government in January.
Mr Kawczynski said: "The EU's failure to negotiate in good faith calls the Withdrawal Agreement into question.
"Surely if there is no deal we should not pay the extra £38 billion EU demanding.
"Instead, go to international arbitration to settle what we owe them."