German Chancellor Angela Merkel and French President Francois Hollande have said they are in "full agreement" on how to handle the fallout from the UK's decision to leave the European Union.

Hollande warned that "separated, we run the risk of divisions, dissension and quarrels".

The two will hold talks later in Berlin amid a flurry of diplomatic activity in the wake of so-called "Brexit".

UK Chancellor George Osborne issued a statement before the start of trading in the UK in a bid to calm markets.

Speaking on Sunday, June 26, Hollande said there was no going back on the UK's decision, adding: "What was once unthinkable has become irreversible."

Chancellor Merkel is to host President Hollande, Italian Prime Minister Matteo Renzi and European Council President Donald Tusk later on Monday.

Her priority is to get Britain out smoothly as soon as is practical and to safeguard the future of the EU.