Theresa May has cleared the latest hurdle in her Brexit negotiations as she arrived in Brussels last night with EU leaders set to approve her deal at a crunch summit today.

Spain has dropped its threat to veto the deal, saying Mrs May had caved in to Madrid's demands to have a say over the future of Gibraltar and take the Rock out of UK-EU trade talks.

But Mrs May insisted last night that the UK's position on Gibraltar had not changed, saying she would always 'stand by' its citizens, while the territory's chief minister denied that Spain had secured new guarantees.

European Council chief Donald Tusk said he would ask EU leaders to approve the deal at Sunday's summit.

The agreement means Mrs May will take the completed deal back to Westminster for a Commons vote, expected early next month.

With a battle looming to win over Brexiteer MPs, Boris Johnson yesterday fired up the DUP - which has propped up Mrs May's government but is set to vote against her - with a pot-stirring speech in which he savaged the PM's 'humiliating' deal.

Last night it was claimed that ministers are making 'Plan B' proposals for a new Brexit deal if Mrs May's agreement is rejected by Parliament.

EU chief Brexit negotiator Michel Barnier (right) kisses the hand of Theresa May in Brussels tonight, after Spain dropped its threat to veto the Brexit deal over the issue of Gibraltar

European Commission President Jean-Claude Juncker welcomes Theresa May in Brussels tonight ahead of Sunday's crunch summit on the Brexit deal

Spain's Prime Minister Pedro Sanchez, pictured at a news conference in Madrid today, withdrew his threat to boycott the EU summit on Sunday amid a row over Gibraltar

Ministers 'draw up secret Plan B' in case May's deal is rejected in Commons vote Ministers are making a secret 'Plan B' for Brexit if Mrs May's deal is rejected in the Commons, it was claimed last night. The PM faces an uphill task to win over Brexiteer MPs, many of whom are furious about the withdrawal agreement and in particular the Irish backstop. Her DUP allies are also poised to desert her in the showdown vote. The backup plan being formulated by ministers would be a 'Norway option' in which Britain stays in the European Economic Area, the Sunday Telegraph reported. Sources said the plan would give the UK a more definite exit procedure from EU rules. Such a mechanism would appease Brexiteer fears that the current deal would tie Britain to Brussels rules indefinitely. However, the Norway option would reportedly not allow an end to free movement of people. Advertisement

Mrs May met EU leaders Jean-Claude Juncker and Donald Tusk at the summit, although diplomats say the agreement is ready for EU leaders to approve.

Spanish PM Pedro Sanchez earlier withdrew his threat to boycott the EU summit on Sunday and said Spain will vote in favour of Brexit after clinching a last-minute deal on Gibraltar.

The row over the British territory at the southern tip of Spain had threatened to derail the Brexit deal.

Madrid has insisted on keeping the issue under its control in bilateral talks with London rather than leaving Brussels to decide its future in a UK-EU trade deal.

Mr Sanchez announced that Brussels and the UK had 'accepted Spain's demands', providing Madrid with what was described in Spanish media as 'triple protection'.

The triple shield is said to consist of guarantees from EU bosses Juncker and Tusk; the 27 remaining member states; and the UK, according to The Local.

'I have just announced to the King that Spain has reached an agreement on Gibraltar,' Mr Sanchez told a news conference.

'The European Council will therefore be held tomorrow. Spain has lifted the veto and will vote in favour of Brexit.'

Madrid's foreign minister Josep Borrell went further, saying the agreement is 'highly positive for Spain' and 'the most important' since the Treaty of Utrecht in 1713 under which Gibraltar was ceded to the UK.

Britain has agreed that bilateral talks will continue with Spain on the future of Gibraltar.

But Mrs May and Gibraltar's chief minister Fabian Picardo cast doubt on Madrid's claim it had won new guarantees.

Speaking in Brussels Mrs May said: 'We have worked through the withdrawal issues for Gibraltar with Spain in a constructive and sensible way.

'We have ensured that Gibraltar is covered by the whole Withdrawal Agreement and by the implementation period and we will always negotiate on behalf of the whole UK family, including Gibraltar, and in the future relationship we will stand up for their interests.

'The UK's position on the sovereignty of Gibraltar has not changed and will not change. I am proud that Gibraltar is British and I will always stand by Gibraltar.'

Gibraltar is a British territory claimed by Spain and a bone of contention as London negotiates a new relationship with Brussels after Brexit on March 29

Mr Picardo said: 'What you have heard from the Spanish Prime Minister today was not a reflection of any new position, however much he tried to present it as such.

'Pedro Sanchez has achieved no guarantees whatsoever in respect of the future of Gibraltar.

'But I can guarantee Pedro Sanchez one thing in respect of the future of Gibraltar: It is an entirely British future that will suffer no dilution.

As Mr Sanchez was speaking, European Council president Mr Tusk issued a letter inviting leaders of EU member states to approve the deal at Sunday's summit.

'I will recommend that on Sunday we approve the outcome of the Brexit negotiations,' he said, saying the deal on the table reduces 'the risks and losses resulting from the United Kingdom's withdrawal.'

He said: 'Although no-one will have reasons to be happy on that day, there is one thing I would like to stress: at this critical time, the EU27 has passed the test of unity and solidarity.'

Liberal Democrat Brexit spokesman Tom Brake claimed the Prime Minister had 'caved in' and 'appears to have cast the people of Gibraltar aside'.

After battling to an agreement with Brussels Mrs May now faces a fierce battle to steer her deal through the House of Commons.

She has so far survived an attempted coup from Tory backbenchers but a defeat in Parliament could trigger a no-confidence vote or general election.

The crucial EU summit (pictured is a staff member adjusting a flag today ahead of the meeting) will go ahead on Sunday with leaders expected to approve the Brexit deal

Boris Johnson blasts May's deal at DUP conference Boris Johnson today spoke at the DUP conference in Belfast to fire up the party faithful in a bid to scupper Theresa May's Brexit plans. The former foreign secretary warned that the PM was heading for an 'iceberg' and her package would leave Northern Ireland 'ruled by the EU'. He said Mrs May was giving away the £39billion divorce settlement too easily – suggesting half should be withheld until after a final trade agreement is sealed at the end of 2020. Mr Johnson said the country was 'on the the verge of making a historic mistake'. 'If we are not careful we are going to stay in the customs union, we are going to stay in the single market, we are going to be rules takers,' he said. 'Unless we junk this backstop, we will find that Brussels has got us exactly where they want us – a satellite state. But Mr Johnson again stopped short of calling for Mrs May to be ousted today, despite dozens of other Eurosceptics putting in no-confidence letters. Advertisement

The Sunday Telegraph reported that ministers are secretly preparing a backup 'Norway option' as an alternative if Mrs May's deal is voted down.

That deal would reportedly create a more definite exit mechanism from EU rules, but would not allow an end to free movement.

In a sign of the trouble she faces, her former Foreign Secretary Boris Johnson spoke at the DUP conference to demand the scrapping of the Irish backstop.

The DUP has propped up Mrs May's government since she lost her majority at last year's election but the alliance has come under strain over the Brexit deal and the party has suggested it will vote against the agreement.

Mr Johnson said yesterday: 'Unless we junk this backstop, we will find that Brussels has got us exactly where they want us - a satellite state.

He warned the draft Brexit deal is in danger of turning Northern Ireland into an 'economic semi-colony' of the EU.

The backstop proposal would see Northern Ireland adopt a different regulatory regime to Great Britain in the event a wider UK-EU trade deal fails to materialise in talks on the future relationship.

DUP leader Arlene Foster told delegates that while she believes Theresa May is 'genuine' in her desire to protect the Union, the draft deal fails to do that.

A Gibraltar housing minister also spoke at the DUP conference demanding that Spain be given no hope of taking away its sovereignty in Brexit talks.

Samantha Sacramento insisted that Gibraltar will not be 'bullied' by any bid from Madrid to undermine its sovereignty.

Samantha Sacramento (left), Minister for Housing and Equality in the Government of Gibraltar met with DUP Party Leader, Arlene Foster (right), today during the party's annual conference at the Crown Plaza Hotel in Belfast

Ms Sacramento gave a rousing address in which she said it was critical the United Kingdom ensures Spain does not make attempts to remove its sovereignty

Arlene Foster says May's deal is 'worse than Corbyn in charge' Arlene Foster has said that Theresa May's Brexit deal is a worse outcome for Britain than a government led by Jeremy Corbyn. Mrs Foster dismissed claims that the DUP is merely playing a game of brinkmanship and would cave in and support Mrs May if the alternative was a general election and a possible Labour government. Asked if Mrs May's Brexit is a greater threat than a government led by Jeremy Corbyn, Mrs Foster told the Times: 'I think it is. 'The reason I say that is on day one of us leaving the EU there would be no difference, we would be exactly the same as the rest of the UK but in year five or ten we would be different. 'If people [in Northern Ireland] are looking to Dublin for representation in Europe because we're the subject of EU rules, that is so dangerous in terms of the Union. 'All the things we build the Union on — the economic unit, the cultural, social, political and historical - start to diverge.' Advertisement

She was applauded as she told DUP conference delegates in the Crown Plaza Hotel: 'Gibraltar will not fold.

'The Union Jack, our precious Union Jack, is not a mere flag. To those of us who have endured hard times to secure the continuity of our British heritage, our British values and freedoms, the Union Jack encapsulates all we are as a people.'

Ms Sacramento said Gibraltar was committed to making Brexit work, despite the fact that 96 per cent of its citizens voted Remain.

'It is critical that the United Kingdom remains firm in the defence of our right to self-determination and that Spain is given no hope in its campaign to take our sovereignty from us,' she told the DUP faithful.

'Our borders and our history are very different but our solidarity in defence of our democratic right to preserve our British way of life is unshakeable.'

She concluded: 'Gibraltar greatly appreciates the support that the DUP has expressed in support of Gibraltar and its right to remain British and, as my chief minister so often says, we are red, white and blue, we are red, white and proud.'

Prime Minister Theresa May has insisted the proposed EU withdrawal deal is in the interests of 'the whole UK family', including Gibraltar.

Spanish Prime Minister Pedro Sanchez (pictured in Cuba) warned last night that he may not attend a crucial EU summit on Sunday should he not be granted more concessions over Gibraltar

The rock of the British overseas territory of Gibraltar, historically claimed by Spain, is seen from the Spanish city of La Linea de la Concepcion, southern Spain, this morning. Last night Spanish Prime Minister Pedro Sanchez ramped up pressure on Theresa May insisting he be given more concessions over the land

Today housing minister Samantha Sacramento insisted Gibraltar (a high street is pictured today) will not be 'bullied' by any bid from Madrid to undermine its sovereignty

So what happens next? If a vote in Parliament on Theresa May's deal is passed, Britain leaves the EU on those terms in March next year. But if the vote is defeated, there are four scenarios: Option 1. Labour tables a vote of no confidence in the Government. If passed, there is a general election 2. Tory MPs force a vote of no confidence in Mrs May. If passed, she would resign, triggering a leadership contest. A new leader could delay the UK's exit by up to a year, in order to negotiate a new deal 3. The Cabinet persuades Mrs May to seek more concessions from Brussels. If successful, she could try a second vote on the new deal 4. Mrs May forces a second Commons vote on her existing deal (or a new one), hoping market turmoil will persuade MPs to think again If a second vote is defeated there are five possibilities: Option 1. Labour tables a vote of no confidence in the Government, hoping to trigger a general election 2. Mrs May announces Britain will leave without a deal – which could trigger Cabinet resignations and a vote of no confidence in her 3. Parliament votes to keep the UK in the customs union, compelling Mrs May to try to negotiate such a deal from Brussels 4. The Government extends Article 50 to delay the UK's exit by up to a year, allowing more time for negotiations and preparations 5. MPs vote to hold a second referendum on Britain's membership of the EU Advertisement

The DUP's Nigel Dodds also savaged the deal, saying: 'The DUP wants a deal with the European Union, we understand that businesses, families and communities want certainty.

'But it is not this deal. It is not a deal at any price. The prime minister used to say that. We still say that.

'So Prime Minister, the message from this conference, from every section of this party is - bin the backstop.'

He added: 'In the coming weeks Parliament will be faced with a clear choice on the future of our country.

'To be a free independent trading nation leaving the EU as one United Kingdom or to be locked into an EU straitjacket, divided and diminished.

'The published Withdrawal Agreement portrays a pitiful and pathetic place for the United Kingdom.

'Hundreds of pages are devoted to a backstop which will bind the United Kingdom into taking the rules of the EU with no right to leave and no end date.'

On Thursday Mr Tusk sent a draft of the political declaration to the EU 27 countries.

The document sets out the framework for the future relationship between the UK and the EU.

It has been agreed at negotiators' level and agreed in principle at political level.

The Withdrawal Agreement is the 585-page legal text that sets out the terms of the UK's departure.

Among its contents are arrangements for the contentious Northern Ireland backstop and the £39 billion 'divorce bill'.

The declaration states how trade, security and other issues will work in broader terms.

In an interview with BBC's Emma Barnett on Friday Mrs refused to say if she would quit if she fails to win backing for her deal.

She said the deal would protect jobs and allow Britain to get on with Brexit in March.

But asked repeatedly whether she will resign if she loses in the Commons - as seems inevitable - Mrs May swerved the question to insist: 'No... I'm focusing on ensuring that we get this deal through Parliament.

'I believe this is absolutely the right deal for the UK. This is not about me.'

Theresa May met separately with European Commission president Jean-Claude Juncker (pictured) and president of the European Council, Donald Tusk

Deputy Leader of the DUP Nigel Dodds told the party conference in Belfast today that it was 'not too late for the Prime Minister to change course'

Democratic Unionist Party leader Arlene Foster greets UK Chancellor Phillip Hammond as he arrives to speak at the DUP party conference yesterday. He defended the draft Brexit agreement as good for the country

Theresa May 'to announce curbs on low-skilled migrants' in last-ditch bid to get hardline Brexiteers to back her EU deal Theresa May is set to announce limits on low-skilled immigration to Britain in a bid to get her Brexit deal through the Commons, it was claimed last night. According to leaked Cabinet papers, the Home Office has drawn up plans to issue low-skilled migrants with 11-month visas. Theresa May (pictured) is set to announce limits on low-skilled immigration to Britain in a bid to get her Brexit deal through the Commons, it was claimed last night The new visas would reportedly offer 'restricted entitlements and rights' while they are living in the UK, the Telegraph reported. The Government will abolish the cap on highly skilled 'tier 2' migrants entirely, the report said, with the plans set out in the week beginning December 3. That would be a week before the crunch vote on the Brexit agreement is expected in the Commons. Immigration was a key theme in the referendum with Leave campaigners promising to end free movement between EU countries and Britain. Advertisement

Also speaking today, Chancellor Philip Hammond claimed that Britain's draft deal to leave the European Union is the best available solution to safeguard the economy and start to reunite a divided country.

'This deal is a way of Britain leaving the European Union ... with minimum negative impact on our economy,' Hammond told the BBC.

'The only thing that is holding the economy back at the moment is uncertainty about our relationship with the European Union,' he added.

'If we were to leave the EU without a deal I have no doubt that the consequences for the economy would be very serious indeed, very disruptive and very negative for jobs, for prosperity in the future.' Hammond, who met DUP leader Arlene Foster on Friday, defended the agreement as good for a country where divisions have been exposed by the June 2016 EU referendum.

'Remaining in the EU after a clear referendum decision to leave EU would be utterly debilitating to our politics, it would completely undermine confidence in the political system and leave large numbers of people feeling betrayed,' he said.

'We also have to look at the political healing process, bringing our country back together, because (...) countries that are disunited and divided are not successful countries.'

The chancellor told BBC Radio 4's Today programme that he believed the deal on offer was better for the UK than remaining in the EU, stressing that it would help heal the divisions caused by Brexit.

'It's a way of leaving the European Union with minimum negative impact on our economy,' he said.

'Economics is not the only consideration - we also have to look at the political healing process, bringing our country back together because countries that are disunited and divided are not successful countries.

'If we want this country to be successful in the future, we have got to bring it back together after this process.'

He warned that a no-deal Brexit would unleash 'economic chaos', adding: 'If the meaningful vote is lost we are in uncharted territory. We will be faced with potential economic chaos; I am sure we would get a very negative reaction from the business community, from investors, from the markets.

He added 'we might end up with no deal, we might end up with no Brexit' if the Withdrawal Agreement is blocked by Parliament.