Ireland’s prime minister has backed a “long extension” to Article 50 to delay Brexit as EU leaders warn that the UK is hurtling towards a disastrous no-deal exit.

Speaking at an EU summit in Egypt Leo Varadkar said any complications caused by Britain staying in the bloc – such as having to participate in EU elections – paled in comparison to the economic damage that could be caused.

At the same meeting Dutch prime minister Mark Rutte warned that Britain was “sleep walking into no deal scenario” and that as the UK’s “best friends” EU countries were urging Britain to “wake up”.

Irish PM Mr Vardkar told reporters: “I’d certainly rather see an extension than seeing the UK leave without a deal. A long extension creates a complication in relation to the European elections, but that’s a small complication relative to the impact on our economy.”

He added that he was “confident” that the UK would either go for “a deal or an extension” and avoid crashing out. But the Taoiseach also dampened expectations of a breakthrough in a meeting with Theresa May, stating that it would be a “chance to listen and hear about her plans in the coming weeks” but that “always bearing in mind that anything that is offered by the EU can’t contradict the letter or spirit of whatever has been agreed”.

But Dutch PM Mr Rutte struck a more urgent tone.

“We are sleep walking into no deal scenario. It’s unacceptable and your best friends have to warn you. Wake up. This is real. come to a conclusion and close the deal,” he said.

He appeared to warn the UK away from a short extension to Article 50, adding: “It’s up to UK. If UK ask for delay, the EU will ask what do you want with it? We don’t want to go round in circles for the next couple of months. What will be achieved by it?”

EU officials have reportedly been discussing the possibility of a long extension to Article 50 in recent days, according to reports out of Brussels.

During a meeting between Angela Merkel and Theresa May at the Sharm El Sheikh meeting the German chancellor asked the prime minister whether she would consider extending Article 50, according to UK government officials with knowledge of the meeting.

Ministers appear to be public split on the matter of an extension, however. Defence minister Tobias Ellwood suggested on Monday morning that he would be "tempted" to vote for a delay, while Damian Hinds, the Education Secretary said the same morning that Brexit would not be delayed and that "it is going to happen on 29 March".

EU officials have previously expressed worries that any significant extension of Article 50 would mean the UK would, under the EU treaties, have to participate in the European Parliament elections scheduled for May.

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A short extension could present problems of its own, however: the European Parliament must ratify any withdrawal agreement, and will dissolve in mid-April ahead of the vote, not returning until July. It would not be able to approve any agreement while it is dissolved.