Britain is set to agree an ‘open skies’ agreement with America this summer that will keep planes flying between both countries after Brexit, The Daily Telegraph can reveal.

Four sources in London and Washington briefed on the talks have said a deal is “close” after consensus was reached on the biggest issues up for debate.

UK and US negotiators have agreed that major transatlantic airlines must be covered despite them being foreign owned - a break with the normal rules.

That means flights from Virgin, Norwegian Air and British Airways owner IAG - all majority-owned outside of the UK and US - would continue after Brexit.

Britain has also offered in principle to include its overseas territories in the agreement, something not covered by the current EU-US 'open skies' deal.

A fresh round of talks will take place next month with officials and well-placed industry sources increasingly confident an agreement is within reach.