The Prime Minister, speaking alongside the German leader following talks in Berlin, said she wanted a "bold and ambitious partnership", but it was not a "one-way street" as European Union firms also stood to benefit.
In a speech on Wednesday, the British Foreign Minister Boris Johnson said it would be "intolerable and undemocratic" if London continues to comply with European regulations after Brexit and cannot set its own laws when it comes to trade with the rest of the world.
"Those who threaten our security would like nothing more than to see us fractured", she is expected to say.
May is hoping to negotiate a transition deal next month which would leave Britain's relationship with the European Union virtually unchanged for around two years.
Asked whether she viewed the Prime Minister's wish for a bespoke Brexit deal, not based on any current models, as "cherry-picking", the Chancellor replied: "In the end, the outcome needs to be a fair balance, that deviates from the single market and not as close a partnership as we've had, but I think one can find that".
Under the proposal, Britain and the European Union would recognize each other's regulatory and supervisory regimes, an option long favored by the financial services industry, the FT said.
She reminded Mrs May that the clock was ticking to conclude trade talks before Brexit and said she was "curious" about Britain's detailed proposals.
On the issue of trading in services, which account for almost 80pc of the UK's economic activity, the report said: "A free trade agreement would still be needed to cover arrangements relating to services, as well as areas in which the European Union has made clear it wants a continued level playing field, in order to maintain any reciprocal preferential market access".
"I want to say that I am not frustrated".
It is especially difficult to find a way to avoid a hard border between Northern Ireland and the Republic of Ireland when the United Kingdom leaves the single market and the customs union.
As part of her trip to Germany, the Prime Minister will outline her wishes for a future security EU-UK partnership in a speech at a security conference in Munich on Saturday.
"We would like to initiate those negotiations because we are under a certain amount of time pressure but we also want be very diligent and very careful in working on this which means we will have frequent exchanges of views".
"Because as the threats evolve, as they grow, as they don't recognise borders, so we need to continue that cooperation and be able to adapt to the threats as they come".