Farage told the chamber that Theresa May’s hated proposal was “probably the worst deal in history” for Britain.
The ex-Ukip boss said: "Mr Barnier, I have to say, I wish you were on our side really, because it is game, set and match to you."
He added that he was in “no doubt” that the PM’s deal was good news for Brussels because it keeps “Britain in the customs union and stuck with EU's rule book”.
He said: “As Mr Barnier said this morning, there is the backstop which means of course the United Kingdom can be held effectively as a hostage for many years to come.
“It's a good deal for the European Union, for the UK, I think it's probably the worst deal in history."
Nigel Farage has congratulated Michel Barnier on beating the UK in Brexit deal talks during an EU Parliament showdownHowever, EU Brexit chief Mr Barnier replied that it was “not a case of winners and losers because Brexit is a lose-lose.”
He said: "I am convinced we will be able to work together for a real and unprecedented partnership,."
But Mr Farage warned Mr Barnier the deal stood no chance of being given the green light by MPs when it headed to Westminster.
He said: “This deal isn't going to be accepted. So perhaps, we all need to grow up and recognise there is a strong chance now of UK leaving on March 2019 with a WTO no deal.
“We need a negotiated deal to deal with sensible border issues.
“I wonder, Mr Barnier, are you prepared for that, because you seems this morning to assume that the British Parliament is going to ratify this. It isn't.”
The showdown in Brussels came after Mr Farage's appearance on Fox News sparked speculation the US President had been influenced by his opinions on the PM's Brexit deal.
Arch Brexiteer Mr Farage savaged Mrs May's proposal and warned of the risk on trade just hours before Donald Trump ranted it was bad news for the UK.
Mr Trump laid into the PM's plans for leaving the EU, saying we might not be able to sign a trade deal.
He blasted: I think we have to take a look at seriously whether or not the UK is allowed to trade because, right now, if you look at the deal, they may not be able to trade with us and that wouldn’t be a good thing."
Today came as Mrs May refused again to re-negotiate her hated Brexit deal – telling MPs that it's the only deal on the table.
The Prime Minister refused to speculate about what she would do if her deal was thrown out by MPs next month as expected.
Around a hundred Tory MPs are set to vote against or abstain on her deal, meaning it's unlikely to pass at all.
In a Commons grilling with MPs today, she appealed to them to "focus on the choice that lies in front of them" and warned there were some that wanted to "frustrate Brexit".
The European Union's Brexit negotiator Michel Barnier told Britain on Thursday the Brexit deal the bloc agreed with Prime Minister Theresa May was the only one possible.
And she said: "What has been made clear from the European Union is that this is the deal that has been negotiated and this is the deal that people need to focus on when they are looking at the vote."
She repeatedly batted away questions about a second referendum or taking the deal back to Brussels to get a better one, saying only "the deal is the deal".
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