The Government is poised to announce a liberalisation of rules on EU nationals’ residency in the UK to allay concerns about their status after a possible no-deal Brexit.

It is understood that free movement rules will be replaced by a three-year leave to remain scheme for any EU citizen arriving in the UK and joining the settlement register before the end of 2020.

The change, to be announced by the Home Office as early as Wednesday, would effectively allow citizens of any of the 27 remaining EU states arriving before the cut-off date to stay in the UK until 31 December 2023.

Thousands protest after Boris Johnson requests to suspend parliament Show all 29 1 /29 Thousands protest after Boris Johnson requests to suspend parliament Thousands protest after Boris Johnson requests to suspend parliament Houses of Parliament An anti-Brexit supporter raises a sign during a protest in front of the Houses of Parliament in central London, Wednesday, Aug. 28, 2019. British Prime Minister Boris Johnson maneuvered on Wednesday to give his political opponents even less time to block a no-deal Brexit before the Oct. 31 withdrawal deadline, winning Queen Elizabeth II's approval to suspend Parliament. (AP Photo/Vudi Xhymshiti) Vudi Xhymshiti AP Thousands protest after Boris Johnson requests to suspend parliament Downing Street Anti-Brexit demonstrators hold placards as they protest outside of Downing Street in London on August 28, 2019. - British Prime Minister Boris Johnson sparked fury Wednesday among pro-Europeans and MPs opposed to a no-deal Brexit by forcing the suspension of parliament weeks before Britain's EU departure date. The pound slid on the surprise news, which opponents branded a "coup" and a "declaration of war" but Johnson claimed was necessary to allow him to pursue a "bold and ambitious" new domestic legislative agenda. (Photo by DANIEL SORABJI / AFP)DANIEL SORABJI/AFP/Getty Images DANIEL SORABJI AFP/Getty Images Thousands protest after Boris Johnson requests to suspend parliament Houses of Parliament Anti-Brexit supporters take part in a protest in front of the Houses of Parliament in central London, Wednesday, Aug. 28, 2019. British Prime Minister Boris Johnson maneuvered on Wednesday to give his political opponents even less time to block a no-deal Brexit before the Oct. 31 withdrawal deadline, winning Queen Elizabeth II's approval to suspend Parliament. (AP Photo/Vudi Xhymshiti) Vudi Xhymshiti AP Thousands protest after Boris Johnson requests to suspend parliament Houses of Parliament to Downing Street TOPSHOT - Anti-Brexit demonstrators hold placards as they take part in a protest march from Britain's Houses of Parliament to Downing Street in London on August 28, 2019. - British Prime Minister Boris Johnson announced Wednesday that the suspension of parliament would be extended until October 14 -- just two weeks before the UK is set to leave the EU -- enraging anti-Brexit MPs. MPs will return to London later than in recent years, giving pro-EU lawmakers less time than expected to thwart Johnson's Brexit plans before Britain is due to leave the European Union on October 31. (Photo by DANIEL SORABJI / AFP)DANIEL SORABJI/AFP/Getty Images DANIEL SORABJI AFP/Getty Images Thousands protest after Boris Johnson requests to suspend parliament Downing Street Anti-Brexit supporters gather outside the Prime Minister's residence 10 Downing Street in London, Wednesday, Aug. 28, 2019. British Prime Minister Boris Johnson asked Queen Elizabeth II on Wednesday to suspend Parliament, throwing down the gauntlet to his critics and causing outrage among opposition leaders who will have even less time to thwart a no-deal Brexit. (AP Photo/Matt Dunham) Matt Dunham AP Thousands protest after Boris Johnson requests to suspend parliament Houses of Parliament LONDON, ENGLAND - AUGUST 28: Pro-EU supporters protest outside the Houses of Parliament on August 28, 2019 in London, England. British Prime Minister Boris Johnson has written to Cabinet colleagues telling them that his government has requested the Queen suspend parliament for longer than the usual conference season. Parliament will return for a new session with a Queen's Speech on 14 October 2019. Some Remain supporting MPs believe this move to be a ploy to hinder legislation preventing a No Deal Brexit. (Photo by Peter Summers/Getty Images) Peter Summers Getty Images Thousands protest after Boris Johnson requests to suspend parliament Houses of Parliament epa07799808 A protestor outside the Houses of Parliament in Westminster, London, Britain, 28 August 2019. The UK government is to suspend Parliament after the summer break, a move that might block MPs from voting against a possible no-deal Brexit.. EPA/WILL OLIVER WILL OLIVER EPA Thousands protest after Boris Johnson requests to suspend parliament Houses of Parliament Anti-Brexit supporters take part in a protest near the Houses of Parliament in central London, Wednesday, Aug. 28, 2019. British Prime Minister Boris Johnson asked Queen Elizabeth II on Wednesday to suspend Parliament, throwing down the gauntlet to his critics and causing outrage among opposition leaders who will have even less time to thwart a no-deal Brexit. (AP Photo/Matt Dunham) Matt Dunham AP Thousands protest after Boris Johnson requests to suspend parliament Whitehall TOPSHOT - Demonstrators hold placards as they protest on Whitehall, near the entrance to Downing Street in London on August 28, 2019. - British Prime Minister Boris Johnson sparked fury Wednesday among pro-Europeans and MPs opposed to a no-deal Brexit by forcing the suspension of parliament weeks before Britain's EU departure date. The pound slid on the surprise news, which opponents branded a "coup" and a "declaration of war" but Johnson claimed was necessary to allow him to pursue a "bold and ambitious" new domestic legislative agenda. (Photo by DANIEL SORABJI / AFP)DANIEL SORABJI/AFP/Getty Images DANIEL SORABJI AFP/Getty Images Thousands protest after Boris Johnson requests to suspend parliament Houses of Parliament Anti-Brexit supporters take part in a protest at College Green near the Houses of Parliament in central London, Wednesday, Aug. 28, 2019. British Prime Minister Boris Johnson maneuvered Wednesday to give his political opponents even less time to block a no-deal Brexit before the Oct. 31 withdrawal deadline, winning Queen Elizabeth II's approval to suspend Parliament. (AP Photo/Matt Dunham) Matt Dunham AP Thousands protest after Boris Johnson requests to suspend parliament Anti-Brexit supporters take part in a protest at College Green near the Houses of Parliament in central London, Wednesday, Aug. 28, 2019. British Prime Minister Boris Johnson maneuvered Wednesday to give his political opponents even less time to block a no-deal Brexit before the Oct. 31 withdrawal deadline, winning Queen Elizabeth II's approval to suspend Parliament. (AP Photo/Matt Dunham) Matt Dunham AP Thousands protest after Boris Johnson requests to suspend parliament Protestors from the European Movement in Scotland hold a walking vigil on the Royal Mile, Edinburgh, to demonstrate against Prime Minister Boris Johnson temporarily closing down the Commons from the second week of September until October 14 when there will be a Queen's Speech to open a new session of Parliament. PRESS ASSOCIATION Photo. Picture date: Wednesday August 28, 2019. See PA story POLITICS Brexit. Photo credit should read: Jane Barlow/PA Wire Jane Barlow PA Thousands protest after Boris Johnson requests to suspend parliament Anti-Brexit supporters shout slogans as they gather outside the Prime Minister's residence 10 Downing Street in London, Wednesday, Aug. 28, 2019. British Prime Minister Boris Johnson asked Queen Elizabeth II on Wednesday to suspend Parliament, throwing down the gauntlet to his critics and causing outrage among opposition leaders who will have even less time to thwart a no-deal Brexit. (AP Photo/Matt Dunham) Matt Dunham AP Thousands protest after Boris Johnson requests to suspend parliament Anti-Brexit supporters take part in a protest at College Green near the Houses of Parliament in central London, Wednesday, Aug. 28, 2019. British Prime Minister Boris Johnson maneuvered Wednesday to give his political opponents even less time to block a no-deal Brexit before the Oct. 31 withdrawal deadline, winning Queen Elizabeth II's approval to suspend Parliament. (AP Photo/Matt Dunham) Matt Dunham AP Thousands protest after Boris Johnson requests to suspend parliament Anti-Brexit supporters take part in a protest at College Green near the Houses of Parliament in central London, Wednesday, Aug. 28, 2019. British Prime Minister Boris Johnson maneuvered Wednesday to give his political opponents even less time to block a no-deal Brexit before the Oct. 31 withdrawal deadline, winning Queen Elizabeth II's approval to suspend Parliament. (AP Photo/Matt Dunham) Matt Dunham AP Thousands protest after Boris Johnson requests to suspend parliament Anti-Brexit supporters gather outside the Prime Minister's residence 10 Downing Street in London, Wednesday, Aug. 28, 2019. British Prime Minister Boris Johnson asked Queen Elizabeth II on Wednesday to suspend Parliament, throwing down the gauntlet to his critics and causing outrage among opposition leaders who will have even less time to thwart a no-deal Brexit. (AP Photo/Matt Dunham) Matt Dunham AP Thousands protest after Boris Johnson requests to suspend parliament Anti-Brexit supporters take part in a protest at College Green near the Houses of Parliament in central London, Wednesday, Aug. 28, 2019. British Prime Minister Boris Johnson maneuvered Wednesday to give his political opponents even less time to block a no-deal Brexit before the Oct. 31 withdrawal deadline, winning Queen Elizabeth II's approval to suspend Parliament. (AP Photo/Matt Dunham) Matt Dunham AP Thousands protest after Boris Johnson requests to suspend parliament Shadow home secretary Diane Abbott addresses protesters outside the Houses of Parliament, London, to demonstrate against Prime Minister Boris Johnson temporarily closing down the Commons from the second week of September until October 14 when there will be a Queen's Speech to open a new session of Parliament. PRESS ASSOCIATION Photo. Picture date: Wednesday August 28, 2019. See PA story POLITICS Brexit. Photo credit should read: Kirsty O'Connor/PA Wire Kirsty O'Connor PA Thousands protest after Boris Johnson requests to suspend parliament epa07799846 Protesters gather outside the Houses of Parliament in Westminster, London, Britain, 28 August 2019. The UK government is to suspend Parliament after the summer break, a move that might block MPs from voting against a possible no-deal Brexit. EPA/WILL OLIVER WILL OLIVER EPA Thousands protest after Boris Johnson requests to suspend parliament Anti-Brexit supporters gather outside the Prime Minister's residence 10 Downing Street in London, Wednesday, Aug. 28, 2019. British Prime Minister Boris Johnson asked Queen Elizabeth II on Wednesday to suspend Parliament, throwing down the gauntlet to his critics and causing outrage among opposition leaders who will have even less time to thwart a no-deal Brexit. (AP Photo/Matt Dunham) Matt Dunham AP Thousands protest after Boris Johnson requests to suspend parliament Anti-Brexit supporters carry a flare near the Cenotaph in central London, Wednesday, Aug. 28, 2019. British Prime Minister Boris Johnson asked Queen Elizabeth II on Wednesday to suspend Parliament, throwing down the gauntlet to his critics and causing outrage among opposition leaders who will have even less time to thwart a no-deal Brexit. (AP Photo/Matt Dunham) Matt Dunham AP Thousands protest after Boris Johnson requests to suspend parliament Anti-Brexit demonstrators hold placards as they protest outside of Downing Street in London on August 28, 2019. - British Prime Minister Boris Johnson sparked fury Wednesday among pro-Europeans and MPs opposed to a no-deal Brexit by forcing the suspension of parliament weeks before Britain's EU departure date. The pound slid on the surprise news, which opponents branded a "coup" and a "declaration of war" but Johnson claimed was necessary to allow him to pursue a "bold and ambitious" new domestic legislative agenda. (Photo by DANIEL SORABJI / AFP)DANIEL SORABJI/AFP/Getty Images DANIEL SORABJI AFP/Getty Images Thousands protest after Boris Johnson requests to suspend parliament Anti-Brexit demonstrators hold placards as they protest outside of Downing Street in London on August 28, 2019. - British Prime Minister Boris Johnson sparked fury Wednesday among pro-Europeans and MPs opposed to a no-deal Brexit by forcing the suspension of parliament weeks before Britain's EU departure date. The pound slid on the surprise news, which opponents branded a "coup" and a "declaration of war" but Johnson claimed was necessary to allow him to pursue a "bold and ambitious" new domestic legislative agenda. (Photo by DANIEL SORABJI / AFP)DANIEL SORABJI/AFP/Getty Images DANIEL SORABJI AFP/Getty Images Thousands protest after Boris Johnson requests to suspend parliament LONDON, ENGLAND - AUGUST 28: Pro-EU supporters protest outside the Houses of Parliament on August 28, 2019 in London, England. British Prime Minister Boris Johnson has written to Cabinet colleagues telling them that his government has requested the Queen suspend parliament for longer than the usual conference season. Parliament will return for a new session with a Queen's Speech on 14 October 2019. Some Remain supporting MPs believe this move to be a ploy to hinder legislation preventing a No Deal Brexit. (Photo by Peter Summers/Getty Images)(Photo by Peter Summers/Getty Images) Peter Summers Getty Images Thousands protest after Boris Johnson requests to suspend parliament Anti-Brexit supporters continue to participate in a late evening protest in front of the Houses of Parliament in central London, Wednesday, Aug. 28, 2019. British Prime Minister Boris Johnson maneuvered on Wednesday to give his political opponents even less time to block a no-deal Brexit before the Oct. 31 withdrawal deadline, winning Queen Elizabeth II's approval to suspend Parliament. (AP Photo/Vudi Xhymshiti) Vudi Xhymshiti AP Thousands protest after Boris Johnson requests to suspend parliament London metropolitan police talk with anti-Brexit supporters in front of the Houses of Parliament in central London, Wednesday, Aug. 28, 2019. British Prime Minister Boris Johnson maneuvered on Wednesday to give his political opponents even less time to block a no-deal Brexit before the Oct. 31 withdrawal deadline, winning Queen Elizabeth II's approval to suspend Parliament. (AP Photo/Vudi Xhymshiti) Vudi Xhymshiti AP Thousands protest after Boris Johnson requests to suspend parliament LONDON, ENGLAND - AUGUST 28: A Pro-EU supporter raises her fist during a protest outside the Houses of Parliament on August 28, 2019 in London, England. British Prime Minister Boris Johnson has written to Cabinet colleagues telling them that his government has requested the Queen suspend parliament for longer than the usual conference season. Parliament will return for a new session with a Queen's Speech on 14 October 2019. Some Remain supporting MPs believe this move to be a ploy to hinder legislation preventing a No Deal Brexit. (Photo by Peter Summers/Getty Images) Peter Summers Getty Images Thousands protest after Boris Johnson requests to suspend parliament LONDON, ENGLAND - AUGUST 28: Pro-EU supporters protest outside the Houses of Parliament on August 28, 2019 in London, England. British Prime Minister Boris Johnson has written to Cabinet colleagues telling them that his government has requested the Queen suspend parliament for longer than the usual conference season. Parliament will return for a new session with a Queen's Speech on 14 October 2019. Some Remain supporting MPs believe this move to be a ploy to hinder legislation preventing a No Deal Brexit. (Photo by Peter Summers/Getty Images)(Photo by Peter Summers/Getty Images) Peter Summers Getty Images Thousands protest after Boris Johnson requests to suspend parliament LONDON, ENGLAND - AUGUST 28: Pro-EU supporters protest outside the Houses of Parliament on August 28, 2019 in London, England. British Prime Minister Boris Johnson has written to Cabinet colleagues telling them that his government has requested the Queen suspend parliament for longer than the usual conference season. Parliament will return for a new session with a Queen's Speech on 14 October 2019. Some Remain supporting MPs believe this move to be a ploy to hinder legislation preventing a No Deal Brexit. (Photo by Peter Summers/Getty Images)(Photo by Peter Summers/Getty Images) Peter Summers Getty Images

It represents a significant scaling down of earlier proposals to end free movement altogether on 1 November in the case of no-deal.

The government was forced to back away from the plans floated by Home Secretary Priti Patel amid fears that they might be vulnerable to legal challenge from some of the 3.5 million EU nationals already resident in the UK.

The Patel plan was branded "reckless" by pressure group The 3million, which said it would result in millions of people who were legally resident in the UK but had not yet applied for settled status finding their positions thrown into doubt overnight.

The EU citizens had previously been told they had until the end of 2020 to apply for settled status which would allow them to live in the UK after Brexit, and only around 1 million are believed to have obtained it so far.

In response to reports of the new scheme in The Spectator magazine, a Home Office spokesperson said only that “our plans will be set out in due course”.

Liberal Democrat home affairs spokeswoman Christine Jardine said: “The Liberal Democrats have long been warning that Brexit will create another Windrush-style scandal for EU citizens. Kicking the can three years down the road will not prevent it.

“Instead of taking away the rights of the 3.6 million EU citizens in the UK at the end of 2020, the Conservatives now want to take away their rights at the end of 2023. That’s hardly much better.

“This plan will only cause huge confusion and uncertainty. How will employers – or even the Home Office – be able to tell who was here before the end of 2020 and who moved here afterwards? That’s why EU citizens are so worried.