A Spanish flag (top), The Union Jack (L), the Gibraltarian flag (C) and the European Union flag fly as they are seen at the border of Spain with the British territory of Gibraltar, historically claimed by Spain, from La Linea de la Concepcion, Spain April 18, 2018. REUTERS/Jon Nazca

BRUSSELS (Reuters) - European Union leaders will urge Britain on Friday to reach a deal with Spain on the status of Gibraltar after Britain leaves the EU, noting such a deal was part of the overall divorce agreement with the EU, draft summit conclusions showed.

EU leaders, called the European Council, will discuss progress in Brexit talks on Friday on the basis of a report by the EU’s chief negotiator Michel Barnier on the state of talks on the withdrawal agreement settling the terms of the divorce.

“The European Council takes note... that ... important aspects still need to be agreed, including the territorial application of the Withdrawal Agreement, notably as regards Gibraltar,” the latest version of the draft conclusions, seen by Reuters said.