The DUP said it wants a Brexit deal after intensive talks with Cabinet ministers including Philip Hammond amid suggestions Northern Ireland could be offered extra cash to break the impasse.

Nigel Dodds, the DUP’s Westminster leader, said talks had been “constructive” and the Government was focused on resolving the Irish backstop issue.

He met with Mr Hammond, along with Chief Whip Julian Smith, Environment Secretary Michael Gove and the effective deputy prime minister David Lidington.

The presence of the Chancellor prompted speculation that Northern Ireland could be given a funding boost in exchange for the DUP supporting Theresa May’s Brexit deal.

Mr Dodds insisted that there had been no discussions about “cash”, but Government sources suggested money could be on offer at a later stage.

The party was handed £1billion in extra funding for Northern Ireland in exchange for its 10 MPs propping up the Government as part of a confidence and supply arrangement struck in the aftermath of the 2017 general election.

Ministers said they were increasingly optimistic that the DUP could be persuaded to back the deal.

Securing the support of the Northern Irish MPs is viewed as crucial to Downing Street’s hopes of winning the third vote on the Prime Minister’s agreement next week.