A majority of the Cabinet now supports moving towards a Canada-style trade deal with the EU following the outright rejection of Theresa May’s Chequers plan, the Prime Minister will be told today.

Mrs May will be urged to rethink her approach to the Brexit negotiations by favouring a free trade agreement that would represent the “clean Brexit” that Leave supporters voted for.

Jeremy Hunt, the Foreign Secretary, has emerged as a key figure in the Brexiteers’ fight to convince Mrs May to change tack. A former Remain campaigner, Mr Hunt is now squarely in the Leave camp and has publicly indicated that he is open to the idea of a Canada-style deal.

It comes as the Institute of Economic Affairs on Monday publishes a detailed alternative Brexit plan, which has the backing of former Brexit Secretary David Davis and former foreign secretary Boris Johnson.

It urges Mrs May to put the deadlocked EU talks on the back-burner and open trade talks with the rest of the world.

Eurosceptics in the Cabinet, which meets on Monday, will tell Mrs May that a free trade agreement is the only form of Brexit deal that could command a majority in Parliament.