BERLIN (Reuters) - Germany plans to allow British citizens and their families living in the country to stay even if Britain leaves the European Union without a deal on future relations, Sueddeutsche Zeitung newspaper reported.

A withdrawal agreement negotiated between London and the EU would allow 100,000 Britons now in Germany to stay after they lose their entitlement as citizens of an EU member.

But EU nations have been stepping up preparations in case no deal is reached between Britain and the EU after the British parliament rejected a withdrawal agreement for a third time.

A document sent by the Berlin government to Germany’s federal states said British citizens and their families would be allowed to stay even without a deal, although they would need to apply for a new permit, the newspaper reported.

The document said no decision had been taken at a European level on the matter, the newspaper added.