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Union chiefs have given the biggest hint yet that Labour will become the party of Remain after months of internal disputes.

They have agreed a “common position” in favour of a second referendum and would back the campaign to stay in the EU.

But the unions also want Labour to keep the option to Leave on the table after the next general election.

Jeremy Corbyn is expected to make an announcement as early as Tuesday that Labour would now back Remain in a public vote.

The Labour leader has been under intense pressure to clarify the party’s Brexit position amid fears it o=is losing core support.

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(Image: Daily Mirror)

His key ally shadow chancellor John McDonnell said at the weekend that Labour “needs to move now” to firm up its policy.

It follows the party’s disastrous showing at the European elections when the pro-Remain Lib Dems sailed ahead.

The unions agreed to support a second referendum on any deal negotiated with the next PM, probably Boris Johnson, or on a No Deal exit.

While Deputy Leader Tom Watson said: "Remain is who we are.

"Our values are remain, our hearts are remain.

"Today is a step in the right direction but our members and supporters are clear that any kind of brexit gives us less than we have now and Labour should not support it.

While Labour MP Chi Onwurah from the Love Socialism Hate Brexit group said: “This is great, trade unions leading the Labour movement to reject hard right Brexit and give people a chance to vote on a deal”.

(Image: PA)

But in a compromise to get powerful Unite general secretary Len McCluskey on board, the unions also agreed to respect the result of the 2016 Brexit vote at the next general election.

Under their plan, Labour would try to negotiate its own Brexit deal with Brussels, focusing on a permanent customs union and protecting workers rights and environmental standards.

That would then be put back to the people in a referendum, with the option to Remain in the EU also on the ballot paper.

Crucially, the unions kept open the option of backing Leave in that referendum if Labour got a “good” deal out of Brussels.

But that step is likely to be one too far for many Remain-backing Labour MPs, who would have to sell the plan on the doorstep.

Mr Corbyn is expected to stop short of endorsing it in his own announcement after Tuesday's shadow cabinet meeting.

Mike Buckley from Labour for a Peoples Vote, said: “The downside [is] voters want to hear ‘Leave’ or ‘Remain’ - and Labour’s position will now be ‘we don’t know yet’, which if we’re not careful will look like more fence-sitting.”

But Remain-backing figures in the party were more relaxed about the compromise.

(Image: PA)

One senior Labour source said: “The next manifesto has not been written and certainly not agreed on. This is simply the unions’ view on what we should do. We’d never commit to anything in the manifesto this far in advance.”

They added: “It is a battle for another day.”

The announcement follows talks between the big five trade unions, followed by a two-hour meeting with all the Labour-backing unions.

While Unison, GMB and some of the smaller unions have always supported Remain, Unite’s shift in position is significant.

Mr McCluskey, a key Corbyn ally, was already softening, saying last weekend that he would back a second referendum on condition Labour won an election first and then negotiated its own deal to put to voters.

A source said: “Jeremy has been working for weeks to unite the party and the whole Labour movement.”