The UK government is considering legal action against Spain over the imposition of additional border checks in Gibraltar, Downing Street has said.
A spokesman said the prime minister was "very disappointed" by Spain's failure to remove the checks over the weekend.
Legal action through the EU would be "unprecedented", the spokesman added.
It comes as the Spanish government says it is considering taking the dispute to the UN Security Council, where it could seek the support of Argentina.
A spokesman told the BBC that although the Falkland Islands - over which Britain went to war with Argentina - and Gibraltar were different issues, there were similarities between the two disputes.
Meanwhile, a Royal Navy taskforce has started to leave UK ports on a routine deployment, which will include a stop at Gibraltar.
While the trip has been described by the Ministry of Defence as "long-planned", it follows a diplomatic dispute between the UK and Spain.
The row was sparked after Gibraltar created an artificial reef which, the Spanish say, will destroy fishing in the area.
Madrid stepped up border controls, which caused lengthy traffic queues, and suggested a 50 Euro fee could be applied to every vehicle entering or leaving the British territory.
A Downing Street spokesman called Spain's actions "disproportionate and politically motivated".
Speaking about potential legal action, he said: "If we go down this route, we would press upon the EU the need to pursue this with a matter of urgency."
It is not clear what the legal options are, the spokesman added, saying it would be up to the EU to explain what any possible sanctions would be.
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