He told Panorama: "It's not viable".
In the interview, to be fully aired as part of the BBC " s "Panorama' programme on Monday night in the United Kingdom, the premier also issues an ultimatum to critics who have questioned her strategy on Brexit.
The IMF said that all likely Brexit scenarios would "entail costs", but a disorderly departure could lead to "a significantly worse outcome".
"We must not put these achievements - and the prosperity of the British people - at risk", Hammond said, urging his government to "heed the clear warnings of the IMF".
Keir Starmer, Labour's Brexit spokesman, said any EU deal must meet Labour's key Brexit tests, which include delivering the "exact same benefits" as Britain now has inside the single market and customs union. As part of the EU, Britain now enjoys the freedom of goods, services, money and people to move across borders with 27 other countries in the region.
She pointed out that countries tended to trade mostly with their neighbours, adding: "I think geography talks very loudly".
BBC political editor Laura Kuenssberg said Theresa May calculated that faced with a "binary choice" of the Chequers deal or no deal, Brexiteers would not have the "chutzpah to say "no way" and Remainers would decide that carrying on fighting the plan would be too risky.
However, the plan faced criticism from within her own party, and triggered the resignation of Foreign Secretary Boris Johnson, who recently referred to her plans as a "suicide vest".
Ireland's deputy prime minister will discuss efforts to avoid a hard border with the EU's chief Brexit negotiator on Tuesday.
The EU have said the economic pillars of the Chequers plan - United Kingdom participation in the single market for goods and a customs arrangement which would see the United Kingdom collect tariffs for the EU - are "unworkable".
Nick Clegg, the former deputy prime minister, said it was a "con trick" to claim the only options were Chequers or no deal.
Labour MP Owen Smith, a champion of the anti-Brexit campaign group Best for Britain, said: "Jeremy Hunt has got more faces than a town clock when it comes to Brexit".
Prime Minister Theresa May has struggled to bridge a deep divide within her Conservative Party about how close a relationship Britain should have with the European Union, and only agreed to a unified negotiating platform with her cabinet in July.
On Sunday Brexit-supporting Environment Secretary Michael Gove said the Chequers plan was the right one "for now".
May will travel to a crucial summit in Salzburg this week to sell her plan to the EU27 leaders.
With almost six months to go until exit from the European Union on 29 March 2019, a poll commissioned by BBC Radio 5 Live suggests that the United Kingdom remains split over whether Brexit will be positive for the UK.