Prime Minister Sir Keir Starmer has agreed a deal with the EU ahead of a major summit with the bloc, the PA news agency understands.
After Government sources said talks were “down to the wire” on Sunday, there was a major breakthrough.
The deal has now been approved by the EU ambassadors’ committee, it is understood.
Details are expected to be announced at the first UK-EU summit on Monday, at which Sir Keir will meet European Commission president Ursula von der Leyen for the second time in four days.
Sir Keir Starmer will meet Ursula von der Leyen for the second time in four days as he aims to secure an agreement on the UK’s relationship with the EU (Leon Neal/PA)
The talks were on a range of issues and an announcement is expected on defence and security, which could feature an agreement allowing British firms access to a 150 billion euro (£125 billion) EU defence fund.
Deals on allowing British travellers to use e-gates at European airports, cutting red tape on food exports, and setting up a youth mobility scheme with the EU, were also thought to be on the table.
But reports suggested disagreements over fishing rights and youth mobility have presented last-minute stumbling blocks.
Government sources said “huge progress” has been made in agreeing “a mutually beneficial deal with the EU” that would “deliver for British working people”.
But they said the Prime Minister has been “clear that he will only agree a deal which delivers in the national interest of the United Kingdom”.
Both Conservative leader Kemi Badenoch and Reform UK leader Nigel Farage have already described the deal as a “surrender”, despite the details not yet being known, and indicated they would tear it up if they came to power.
Youth mobility could prove a major sticking point for the Opposition, and Mrs Badenoch said she feared it would involve a return to free movement “by the back door”.
The Tories have also set out a series of “red lines” on fishing rights, including ensuring exclusive access to Britain’s territorial sea and resisting “a multi-year agreement which only benefits France”.
Shadow environment minister Victoria Atkins said: “The Conservatives have always stood up for our coastal communities and our fishing industries.
“Labour must not throw our fishing rights overboard in their desperation to bail out their failing fiscal policies.”
Meanwhile, the Liberal Democrats said Britain should not to be “dragged back” to “the Brexit wars of the past”, and leader Sir Ed Davey compared Mrs Badenoch and Mr Farage with “dinosaurs fighting old battles”.
He said: “Keir Starmer must be bold and ambitious for our country in today’s summit. Voters were promised change by this Government and they have to deliver.
“Being truly ambitious, including a new UK-EU customs union, would be the single biggest thing ministers could do to boost public finances.
“Anything less would be a choice to limit growth, harming living standards and hitting the NHS and other public services.”
This article was written by PA Political Staff, Christopher McKeon and Helen Corbett from Press Association and was legally licensed through the DiveMarketplace by Industry Dive. Please direct all licensing questions to legal@industrydive.com.