"There has to be access to European markets and above all there has to be a dynamic relationship to protect the conditions and rights that we've got for environment and consumer workplace rights", Corbyn said according to the Guardian.
"And that both parties, the Conservatives and Labour, will again already what they did for months - run down the clock".
He said they will have "all the rights and obligations" of full members.
Mr Verhofstadt echoed arguments against a Brexit extension made by President Macron, who is the most powerful ally of the MEP's liberal bloc in next month's European Union elections.
"We must continue to deal with Brexit with an open mind and in a civilised manner", he said.
"I fear it will prolong uncertainty and it will import the Brexit mess into the EU and poison the upcoming European election", Mr Verhofstadt continued. The country "cannot" be treated as a second-category member state, he said.
"He's already campaigning. He's already rallying with a new party: the Brexit Party is catching up with the Conservatives in the polls and the old parties Labour and the Conservative risk being wiped out during the European elections".
"Meanwhile, US Speaker of the House of Representatives Nancy Pelosi has said there would be no chance whatsoever" of a post-Brexit trade deal between the US and United Kingdom if there was any weakening of the Good Friday Agreement. "You can not drag out Brexit for a decade".
'The only thing that can save this is Nigel Farage'Donald Tusk watched on as Mr Verhofstadt criticised his approach to Brexit.
EU summit chair Donald Tusk called on Tuesday for the "dream" that Britain might give up on leaving the European Union not to be dismissed and urged politicians not to let exhaustion with Brexit negotiations make for a hasty exit. I didn't respond at the time, but today, in front of you, I would like to say: "at this rather hard moment in our history, we need dreamers and dreams", he added.
Cross-party talks between the government and the Labour Party are set to resume this week to find a way through the impasse.