Priti Patel said the Cabinet has a "clear position" which includes an end to the free movement of labour when the United Kingdom leaves the European Union, expected in 2019.
Along with other cabinet "gradualists" such as Amber Rudd and Damian Green, Hammond believes that for some time after Brexit day in March 2019 the United Kingdom should continue to accept free movement, be part of the single market and sign no external trade deals.
But it comes amid apparent splits over the terms of any transition arrangement to provide a bridge between the withdrawal date and the agreement of a new trade deal with the EU.
Mr Hammond also said there would be a registration system in place for people coming to work in the United Kingdom after Brexit.
But Leave-supporting International Trade Secretary Liam Fox intervened last weekend to insist unregulated immigration would not "keep faith" with the European Union referendum result.
Ms Patel, the International Development Secretary, told Sky News: "There's a very clear position and that position has been outlined by the Prime Minister in her Article 50 letter but also through the negotiations being led by David Davis".
The Institute of Directors (IoD) set out a range of options including membership of the European Economic Area (EEA) and extending the Article 50 negotiating timetable, which will now see Britain quit the European Union by the end of March 2019.
Jobless Rate Climbs Again In Windsor
Manufacturing employment increased by 13,700 on the month to give a 3.1% annual increase while construction jobs declined on the month.
With the Bank of England cutting forecasts for growth this year and next as it sees worries by businesses and consumers about Brexit crimping investment and spending, there is an urgent need for the government to agree a "transitional, interim or bridging" arrangement, theInstitute of Directors said in a new report outlining the growing Brexit concerns of United Kingdom big business.
Ms Patel also rejected claims that Brexit-supporting MPs like herself were not having their voices heard in the wake of the Conservatives losing their majority in the General Election.
"Of course that is not the case because the negotiations are just taking place", she said. "The point is this isn't about which side of the argument you are on, this is about delivering the best deal for our country".
The business group has put forward a range of options, including membership of the European Economic Area (EEA) and extending the negotiations beyond March 2019.
Given the "unprecedented nature" of the forthcoming trade talks and "increasing scepticism", a final agreement can be reached before the article 50 window expires in March 2019, the government must take early steps to minimise the risks to business from a chaotic, cliff-edge departure, the IoD said.
Possible routes that could be taken include extending the Article 50 deadline, even if this solution would involve some very delicate political tap-dancing on the part of both European Union and United Kingdom politicians.