Mr Hinds said he would have preferred the government "didn't have to go into talks with Labour" but asked: "What's the alternative?"
Ahead of European elections later this month, two separate polls, by ComRes and Opinium, give the Brexit Party the biggest share of the vote with the Conservatives in fourth place behind Labour and the Lib Dems.
But the party will demand a public vote if it can not get changes to the government's deal or an election.
"I do think we do probably in the coming days need to make that assessment".
Sir Keir highlighted how the party lost 200 lost seats in this month's council elections, which he said were a sign Labour was losing the trust of Remain as well as Leave voters.
If she is still in office on June 15, party activists will hold a vote of no confidence in her leadership, which she is expected to lose.
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The Sun says Mr Watson will tell the Fabian Society that Mr Smith, who was tipped to become prime minister before his death 25 years ago, saw "anti-EU sentiment" as "wrong-headed".
The Tories were placed at just 10 per cent, behind nearly every major political party, according to a Yougov poll commissioned by the Times.
YouGov political research manager Chris Curtis said: "The upcoming European Parliament elections will be the first outing for two brand new parties: Change UK - The Independent Group and Nigel Farage's Brexit Party".
"This is a deliberate tactic being used by everybody else because they want to get away from having a proper debate about the extent of which our Brexit vote - and the promises made to us at the general election - have been betrayed".
Talks between representatives from the government and Labour are set to continue on Monday - Mrs May is hoping to reach a cross-party consensus on her withdrawal agreement after failing to get it through Parliament three times.
Speaking to the BBC Radio 4 Westminster Hour on Sunday night, the Chancellor's parliamentary aide, Huw Merriman, said the Tories will suffer "an absolute mauling" in next week's European Parliament elections. He later wrote in Twitter that in a choice between a no-deal exit or staying in the European Union, he would vote to leave without agreement.
"We're at the ideal storm, so yes, I think we'll get an absolute mauling".