Fabian Picardo has held talks with the Scottish Government on striking a separate Brexit deal that preserves free movement of people and single market membership.
In an interview, Mr Picardo claimed he had not encountered hostility from the UK Government towards the idea of Gibraltar securing special terms for exiting the EU.
He said a second referendum would “present people with two certainties” of either proceeding with the terms that Prime Minister Theresa May’s negotiates with Brussels or staying in the EU.
A second referendum would not “cut across Mrs May’s red line” that the whole UK should leave the EU together, the chief minister added.
And he dismissed claims that holding another referendum was an attempt to “thwart” the people’s will.