UK health secretary Jeremy Hunt said he had decided to go ahead with the new contract to end uncertainty in the National Health Service (NHS).
He told the House of Commons: "Progress has been made on almost 100 different points of discussion with agreement secured on approximately 90 per cent of them.
"Sadly, despite this progress and willingness from the Government to be flexible on the crucial issue of Saturday pay Sir David Dalton [the Government's chief negotiator] wrote to me yesterday warning that a negotiated solution is 'not realistically possible'.
The British Medical Association (BMA) branded the entire handling of the dispute by the government as "shambolic" and stressed that it "cannot and will not" accept the new contract.
"Our message to the government is clear - junior doctors cannot and will not accept a contract that is bad for the future of patient care, the profession and the NHS as a whole, and we will consider all options open to us," a BMA spokesperson said.
The main sticking point remains payments for working on weekends, referred to as anti-social hours, but the government argues that the current arrangements are outdated and changes are needed to improve standards of medical care at the weekend.
Junior doctors, a term covering nearly 50,000 medical professionals in the UK who are fresh out of medical school as well as those with more experience behind them, have warned that the new contract will affect patient safety by encouraging unsafe shift patterns and also financially hit doctors who work the longest hours.
Hunt's latest announcement raises the prospect of further strikes or even legal action and mass resignations with doctors refusing to sign contracts.
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