After Boris Johnson lost a key vote on the timetable of his deal on Tuesday night, EU officials are reportedly willing to grant a so-called ‘flextension’ - meaning Britain will be able to leave the EU as soon as a deal has passed.
However, Brexit Party leader Mr Farage believes the country must now head to the polls as is the “only possible route to get some resolution”.
Asked what length of extension he thought the EU would offer, Mr Farage told the BBC: "Obviously what they want is a general election or a second referendum - they want some degree of resolution.
"So I would have thought at least until the end of January, perhaps even longer.”
Mr Farage has previously blasted the deal that Mr Johnson agreed with the EU last week, calling it “rotten” and “not Brexit”.
Arguing that it would bind Britain to the EU in too many ways, Mr Farage said he would prefer an extension to the October 31 Brexit deadline to be followed by a general election rather than a parliamentary vote in favour of the new terms.
Mr Farage said he favours a "clean break" with Europe rather than "another European treaty”.
Read more from Yahoo News UK:
However, he came under fire last week for criticising European Commission president Jean-Claude Juncker for going against the Benn Act - which prevents a no-deal Brexit.
After Mr Juncker last week appeared to rule out any extension, Mr Farage tweeted: "So an unelected, retiring bureaucrat says: No extension, take this new treaty or just leave.
"He is overriding the Benn Act. The EU shows itself to be a thuggocracy - power without accountability. Appalling people.”
Former first secretary of state Damian Green used a famous, much used, meme of a couple walking past a woman and the man looking back at her, to apparently imply that the Brexit Party leader was not sticking by his stated beliefs.
European Council president Donald Tusk is said to be recommending to other EU leaders that an extension is granted to allow Britain more time to dissect the deal.
However, Mr Johnson has told Mr Tusk that there should be no Brexit delay, and that it is in the EU and UK's interests that Britain leaves the bloc on October 31, according to a Downing Street spokesman.
The PM spoke to Mr Tusk on Wednesday morning after his plans to fast-track his deal through the Commons by the end of the month hit the buffers.
Mr Johnson "set out that he continues to believe that there should be no extension and that it is in the interests of both (the EU) and the United Kingdom for us to leave on October 31", Number 10 said.
A source said the PM believes it is still possible to deliver Brexit with a ratified deal by the deadline, but EU leaders will now decide whether to grant Britain a further extension, and for how long, in order to allow the UK to leave with a deal.
Opposition parties have signalled they will back a general election this autumn if the EU grants a delay to Brexit until next year.