David Cameron has told the EU it must reform freedom of movement rules if Britain is to maintain close economic ties with the continent in the wake of the referendum.

In his final meeting with EU leaders before standing down as Prime Minister, Mr Cameron claimed that British voters backed a Brexit because people believe the country has “no control” of its borders.

Setting out the basis for a future British deal with the EU, he said Britain would only be able to maintain access to the single market if the bloc agreed to look again at its policy of open borders.

The Prime Minister’s comments will be seen as a sign that senior Government figures believe that Britain will be able to negotiate an “exit package” with the EU over the coming months.

That could allow Britain to retain access to the single market without having to accept unlimited immigration from the EU.