"No deal means that we won't be paying the money," he told the BBC.
"It is conditional on an outcome. It is conditional on getting an implementation period, it is conditional on a trade outcome," he said.
Under an initial agreement reached with the EU on Friday, Britain will pay a financial settlement of between 35 billion- 39 billion pound for leaving the bloc in March 2019.
Davis' stance contradicts comments from Hammond on Wednesday, who said London would pay the bill regardless of their outcome.
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"But I find it inconceivable that we as a nation would be walking away from an obligation that we recognised as an obligation," he said.
"That is not a credible scenario. That is not the kind of country we are. Frankly, it would not make us a credible partner for future international agreements."
Davis' interview also sparked reaction in Dublin, after the Brexit minister told the BBC the agreement struck was "a statement of intent" rather than "legally enforceable".
Ireland responded that the deal was "binding" and it would hold Britain accountable -- branding his comments "bizarre".
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