Boris Johnson has denied claims that he has been "to war" with leaders in the north of England.
The Prime Minister affirmed that the government has had "great conversations" with local leaders and mayors as regions have been told to move into stricter lockdown measures.
Mr Johnson then expressed his gratitude to Greater Manchester mayor Andy Burnham.
His comments at a coronavirus press conference on Thursday come following a turbulent week between Downing Street and Greater Manchester leaders.
Negotiations over a financial package to support the region moving into Tier 3 had failed after a number of days of discussions.
Mr Burnham said the government had "walked away" and accused the Prime Minister of "playing poker" with people's lives when a deal could not be reached.
Boris Johnson imposed the toughest lockdown measures after an ultimatum was given, where he later promised that £60m "will be distributed to the boroughs of Greater Manchester".
Speaking at the Downing Street press briefing, BBC Political Editor Laura Kuenssberg addressed the Prime Minister and said: "You've been to war with leaders in the north of England, you're still leaving workers on two thirds of their wages or telling them to claim benefits.
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"Cases of coronavirus keep on rising, is this really the kind of leadership you think the country deserves?"
Mr Johnson responded with: "I must strongly reject what you say about me being at war with local leaders, that's not the case.
"We've had great conversations with local leaders, mayors, others in Liverpool, Lancashire, in South Yorkshire, West Midlands, London. And everybody has come to the table and shown leadership, stepped up to the plate and agreed to help bring the R down in that particular area, which is what we need to see."
He added: "I am grateful to also Andy Burnham in Greater Manchester where he's agreed to help bring the R down with the package of measures in Tier 3."
The PM then went on to thank the efforts of people across the country, adding: "We are starting to see some progress."
"It is early days and it will be tough but I really do think that this balanced approach, avoiding another full scale lockdown and avoiding letting the virus rip, is the right way forward and that is what we are pursuing."
On a final note, Mr Johnson said: "A balanced middle course relying on local cooperation and Laura, I must say I disagree with you, we've had fantastic local cooperation. Yes it's tough but we will certainly get through it very well."
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In the same briefing, Mr Johnson was then asked if London is a higher priority than the north of England following the increase of business support a week after the capital moved into Tier 2 restrictions.
He said the regional negotiations with local leaders were all about “fairness” and what they are trying to do now is address a “national issue” as the virus rises again and fears for businesses grow.