European Union negotiators will this week offer a Canada-style trade deal putting pressure on Theresa May’s Brexit ‘red lines’.

The Prime Minister’s negotiating position – set out in a speech in the City of London on Friday - will come under renewed pressure as the EU produces its first guidelines on the future trading relationship.

Mrs May used a BBC interview today to suggest she is willing to “negotiate” on the numbers of immigrants allowed into the UK from the EU after Brexit.

Mrs May said: “We’ll be setting out our immigration rules; we’ll negotiate with the EU because obviously we want to look at what happens to UK citizens as well as what happens to EU citizens.”

But that came as Ireland’s deputy prime minister said the EU is set to reject Mrs May’s plan for a soft border in Northern Ireland.