There is still time for the UK to strike a deal with the EU despite pessimism in Brussels, the Brexit Secretary has said.

Asked whether a deal could still be struck at the October EU summit, Stephen Barclay said the UK was approaching the "moment of truth" when a deal would happen.

Mr Barclay met with Michel Barnier, the EU's top Brexit negotiator, this afternoon.

"A deal can be done, but there needs to be political will on both sides and we’re now approaching the moment of truth in these negotiations," he said.

"We are committed to securing a deal, the Prime Minister has made clear he wants a deal, but there has to be political will on both sides and that’s what we’re exploring."

The Brexit Secretary added that Jean-Claude Juncker has said he is not committed to the Northern Ireland backstop, and "for the country to move on, for us to be able to then to go through bringing people back together, we need Brexit to happen in order to do that".

"I have been very clear with Michel Barnier and Taskforce 50 in the negotiations, the backstop has to go, but with good will on both sides a deal can be done," he said.

Mr Barclay's comments came after Ireland’s deputy prime minister said that even if a Brexit deal is agreed, Britain will have to remain part of the EU’s single market and customs union until 2023 to allow time to negotiate a free trade agreement.

Simon Coveney said there had been no “serious proposal” from Britain to break the Brexit deadlock over the Irish backstop and that “significant gaps” remained between the two sides after meeting with Michel Barnier, the EU’s chief Brexit negotiator, in Brussels.

Mr Coveney said that if there was a deal, a transition period of two to four years would be needed to negotiate a free trade agreement between the UK and the EU.

The transition period deep-freezes Britain’s EU membership, potentially keeping it effectively in the bloc, but without voting rights, until 2023.

While the UK can negotiate free trade deals in that time, it can’t sign them until the period is over and Britain will have to accept all EU rules for as long as it lasts.

“A transition period for the next two to four years - that creates time and space to hopefully design a future relationship that's good for everybody,” Mr Coveney said, “but until there's a deal done, until there's a Withdrawal Agreement agreed that can't happen”.

“Until there's a serious proposal in writing that can be the basis for a negotiation then the gaps that are wide at the moment will remain,” he said.

Jean-Claude Juncker, the president of the European Commission, has also warned the trade talks could drag on beyond the current date of the end of 2020, even if there is a deal.

“These agreements have sometimes taken many years. It is not clear why this could be faster, “ he said, “ It is not clear why this could be faster with Britain.”