Britain and Ireland are just 'hours away' from securing a deal to take to Brussels to move Brexit talks on to trade, an Irish official has tonight said.

The official said Westminster and Dublin are 'very close' to an agreement on the Irish border and that talks are 'moving quickly', with discussions expected to continue throughout the night.

Theresa May has held talks via telephone with European Commission president Jean-Claude Juncker and the Irish PM Leo Varadkar tonight.

Mr Juncker's chief spokesman Margaritis Schinas said after the calls that an early morning meeting and 'press point' was 'possible', but added: 'We are making progress but not yet fully there. Talks are continuing throughout the night.'

A Number 10 spokesman also confirmed the calls, adding: 'Discussions about taking forward the Brexit process are ongoing.'

A UK Government source said: 'We're not there yet.'

Theresa May (pictured left outside No10 yesterday) has been scrambling to get her Brexit plan back on track and is said to be just 'hours away' form reaching a deal with the Irish PM Leo Varadkar (pictured right) to take to Brussels

Magaritas Schinas, a spokesman for Jean Claude-Juncker, said talks 'are continuing throughout the night' and suggested a deal is very close and could be announced in the morning

DUP leader Arlene Foster (pictured in Belfast on Monday night) refused to back down in a row over Brexit insisting she was just as 'unequivocal' as Dublin about the terms of the Irish border

A spokeswoman for Mr Tusk confirmed he would make a statement at 7.50am Brussels time (6.50am UK time) - before the London Stock Exchange opens - but would not give further details.

The PM is on the cusp of a breakthrough on Brexit talks after her last plan to move the negotiations on to trade was suddenly torpedoed by the DUP on Monday.

The party - which props Mrs May up in No10 - pulled the plug at the eleventh hour amid fears the proposals for the Irish border would tear the UK apart.

The PM must get all sides signed up to a new plan by a crunch summit in Brussels in just seven days time at the very latest.

It comes after Boris Johnson fired a warning shot to Mrs May not to compromise any more on Brexit as Britain has met Brussels 'more than half way' on key demands.

An Irish official told a British Irish Chamber of Commerce event in Brussels: 'It is moving quite quickly at the moment. Negotiations are continuing.

'I think we are going to work over the next couple of hours with the UK government to close this off. I say hours because I think we are very close.'

While European Council president Donald Tusk has scheduled a Brexit press briefing early tomorrow morning fuelling rumours Britain is on the cusp of a breakthrough.

An Irish Government spokesman said: 'Matters are being considered as part of ongoing discussions involving the (EU negotiating) Task Force, the Irish Government and the British Government.'

WHY IS THE IRISH BORDER SUCH A THORNY ISSUE? Why is the Irish border a problem? After Brexit, Northern Ireland will have the only land border between the UK and the EU. With Britain leaving the single market and the customs union – but the Republic staying inside both – there are questions about how to move goods over the 300 crossing points along the 310-mile frontier. What does each side want? Dublin – backed by the EU – says there must be no 'hard border' involving customs checks for fear of undermining peace accords. Irish ministers have suggested Northern Ireland should stay inside the customs union. But Mrs May – and the DUP – could never agree, as it amounts to breaking up the integrity of the UK. Why was the last deal scuppered? Downing Street, Dublin and Brussels all thought they were ready to sign off on adeal to move Brexit talks to trade on Monday. But they collapsed at the eleventh hour when the DUP - who prop Theresa May up in No10 - pulled the plug on them. They collapsed talks amid fears only Northern Ireland would keep 'regulator alignment' with the Republic post Brexit - effectively pushing border controls eastwards to the border with the rest of the UK. They feared the deal would drive a wedge between the UK which could tear it apart. Advertisement

But he did not specifically confirm whether or not a new form of text had been tabled by UK negotiators.

DUP chief whip Sir Jeffrey Donaldson said: 'Discussions are ongoing.'

Earlier today, Mr Johnson insisted the Brexit deal must stick to the spirit of the Leave campaign and mean the 'whole of the United Kingdom' takes back control from Brussels.

The Foreign Secretary said Britain's pledge to pay the EU a £50billion divorce bill was a 'very good' offer and said it is time to 'get going' with trade talks.

The remarks by Mr Johnson - a leading Brexiteer - will be seen as a warning to Mrs May not to give much more away .

And he piled pressure on the PM to come up with a plan which ensures there is no regulatory difference between Northern Ireland and the mainland UK post Brexit.

Speaking at the Foreign Office in London today, he said: 'It is very, very important that whatever happens now, whatever we agree, has got to be consistent with taking back control of our laws, of our borders and of our cash.

He said the UK was making a 'very good' financial offer to the EU and defended his comments the EU could 'go whistle' for a large divorce bill insisting he was referring to reports of demands of £100 billion.

Mr Johnson said: 'I was asked my reaction to some of the very extortionate sums that I had heard in the region of £80 or £100 billion, and, I don't want to repeat the offending phrase, but go whistle seems the appropriate reaction to that kind of money.

'When it comes to other sums and other obligations, a more detailed examination of our obligations, our financial obligations, I think you will find the British Government is absolutely punctilious in wanting to meet our friends more than half way and to be useful.

'I think you will find the financial offer that we are making is very good, but it is nowhere near the sums that I was first invited to comment on in a musical way.'

And he took a swipe at any deal which would subject Northern Ireland to different rules and regulations than the rest of the UK.

Foreign Secretary Boris Johnson (pictured in London today) repeated British demands for a start to trade talks today despite EU demands the divorce must be agreed first

Speaking in the opulent Foreign Office today (pictured), Mr Johnson said the agreed figure - thought to be around £50billion - was a 'very good' offer that should pave the way for the next phase.

Despite the chaos engulfing the Brexit negotiations, Theresa May took time out of the diplomatic fracas to choose a Christmas card designed by children in her constituency

He said: 'You can take it from me that whatever comes up, whatever the solution that we come to, whatever we devise getting on to the body of the talks, it's got to be consistent, it's got to be consistent with the whole of the United Kingdom taking back control.'

And he threw down the gauntlet to the EU urging them to hurry up and kick start the next phase of negotiations on trade.

EU CITIZENS WILL BE ABLE TO BRING THEIR FUTURE CHILDREN TO THE UK Britain will guarantee rights for as yet unborn children who join EU parents in the UK after Brexit, a leaked document reveals today. Britain will also accept EU judges' rulings on such rights, according to a draft European Parliament resolution. The document also supports Theresa May's call for an agreement from Brussels that British citizens in the EU will be able to live freely in any member state after Brexit. But it contains no mention of how long EU citizens living in Britain might have any recourse to the European Court of Justice - a continuing sticking point in the Brexit talks. The draft resolution was prepared on the basis of an agreement May was about to sign on Monday before objections. A final version of it could be voted by MEPs as soon as next week. The draft, revealed by the Reuters news wire, has since gone back into negotiations after Mrs May's DUP allies rejected working on the Irish border. Advertisement

Breaking briefly into French, he said: 'We need to get going, franchement (frankly), with the second part of the talks.

'That's the exciting bit. That's the bit where we will achieve a new trading relationship with our friends and partners.

'We can get it done, we just need to get on with it, and I hope very much that the December European Council will mark that progress.'

EU leaders will meet next week to formally decide whether that second phase, on the future UK-EU relationship, can begin.

Before they will do so a deep impasse over how the Irish border will work must first be navigated.

The EU Commission today said there was still no 'white smoke' but that Jean-Claude Juncker was on stand-by to meet Mrs May 'at any moment'.

Mrs May must finds a solution acceptable to the DUP in Northern Ireland, the Irish Government in Dublin and her own Tory party in Westminster.

The crisis in the talks came against a backdrop of renewed rumours about Mrs May's future today as critics claimed there was the 'smell of death' around her and reports said Mr Juncker feared she could be replaced by a hardline Brexiteer.

The PM is expected to make a last minute dash to Brussels as soon as the DUP sign off on a fresh plan to move the Brexit talks on to the next phase.

The DUP torpedoed attempts to move the talks on amid fears a guarantee to keep regulatory alignment between Northern Ireland and the Republic would move customs controls to the border with the rest of the UK a d risk breaking up the union.

Commission spokesman Margaritis Schinas told reporters in Brussels today: 'So far no white smoke.

'We stand ready to receive prime minister May at any moment in time when they are ready,'

DUP sources this morning told The Sun: 'We're going to slow it all down. This is a battle of who blinks first — and we've cut off our eyelids.'

Mrs May is scrambling to find an agreement that is acceptable both to her DUP partners in Westminster and the Irish government in Dublin

The Prime Minister has denied caving into Brussels demands as she scrambles to get the plans back on track. She is pictured switching on the Christmas lights at Downing Street last night

Leo Varadkar said Theresa May plans to propose suggestions on an Irish Border over the next 24 hours as she desperately tries to seal a Brexit divorce deal.

Downing Street today said talks continued. The PM's spokesman told reporters: 'We think we're close to an agreement but there's more work to be done.'

The pressure for May is on, with one EU official telling The Telegraph: 'Mr Juncker wants to support Mrs May to avoid the collapse of her government.

NO TRADE TALKS FOR MONTHS UNLESS A DIVORCE DEAL IS DONE BY NEXT WEEK Brexit trade talks might not start until the Spring unless a divorce deal is done in the coming days. The EU summit taking place next Thursday and Friday is the last opportunity this year to get approval for the second phase of negotiations. Unless leaders agree this time around that 'sufficient progress' has been made, it might have to wait until the next gathering in several months. The EU has also been insisting that a deal must be thrashed out several days before the summit so it can be put out for 'consultation'. But in reality it is likely the arrangement over the Irish border - thought to be the biggest outstanding issue - could be settled by leaders on the night if it came to a crunch. EU commission president Jean-Claude Juncker has made clear he is prepared to meet Mrs May at any point over the next week to try to clear the first phase. Advertisement

'He is prepared to meet her at any time, including on days next week in the run up to the European summit.'

Another source said there was 'wiggle-room' to change the controversial wording in the agreement concerning the border between Northern Ireland and the Republic, that caused talks to fail on Monday.

The source said: 'It's a highly difficult situation for Theresa May and he [Juncker] wants to help her.

'It's important that he supports her in everything she does.'

Despite Mr Juncker's apparent flexibility, EU negotiator Michel Barnier has insisted the deal must be done by Friday if trade talks are to be started at the leaders summit in seven days.

May has also been threatened by her own MPs, some of whom have stressed she could be thrown out of Downing Street if she fails to secure a deal.

One Tory MP said it could be 'a matter of weeks' if the situation does not improve.

Another MP told the Sun the Prime Minister had the 'smell of death' around her amid the crisis in the Brexit talks.

Possible successors include David Davis, Boris Johnson and Michael Gove - all three of whom are said to be prepared to take charge if others pushed May out.

MPs linked to Brexit Secretary Mr Davis denied to MailOnline they were involved in an active plot against the Prime Minister today.

Theresa May, pictured at PMQs yesterday, had planned to return to Brussels swiftly to try to complete a divorce deal with the EU, but this has been cancelled

In other developments, twenty MPs have written to May to attack pro-Brexit colleagues for being 'highly irresponsible' in risking a no-deal outcome for Britain.

Tory Anna Soubry and Labour's Chuka Umunna have joined forced to table a new amendment to flagship Brexit laws that would allow Parliament to ask for an extension to Article 50.

The Irish prime minister yesterday said May wanted to 'come back to us with some text tonight or tomorrow'.

He added: 'I expressed my willingness to consider that because I want us to move to phase two if that is possible next week.'

May angrily denied caving into Brussels demands as she scrambles to get the EU divorce plans back on track.

But the DUP, who humiliatingly torpedoed the proposals just before Mrs May was due to seal them on Monday, have demanded more assurances they will not trigger the break-up of the UK.

Mr Varadkar previously warned he was ready to delay a decision on launching trade talks to beyond Christmas - even though it could raise the prospect of Britain leaving with 'no deal'.

EU Commission President Jean-Claude Juncker (pictured with the PM on Monday) is ready to 'receive Prime Minister May at moment' if she can patch up her deal

Brexiteer Bernard Jenkin today accused the European Commission of being 'intransigent' over refusing to discuss trade until divorce issues were dealt with, and said Brussels had been using the Republic of Ireland as a 'proxy' in order to prevent the creation of an open frontier on the EU's border.

Mr Jenkin told BBC Radio 4's Today programme: 'I don't think we should walk away, but I do think we should take a firm line, as the Prime Minister did earlier this week.

'We shouldn't be allowing ourselves to be bullied into promising more and more money or giving up the goal of regulatory autonomy or being dragged into a long period of uncertainty without clarity on what we are getting at the end of it.'

Transport Secretary Chris Grayling, one of the most prominent Brexiteers in the Cabinet, said: 'I remain absolutely optimistic that we will reach a successful point, we will move on to the trade talks, because ultimately it is in everybody's interests for that to happen.'

Businesses in the Republic of Ireland would suffer if no agreement was reached on the border, he warned.

'If you are running a business in the Republic of Ireland and shipping foods to the EU, the relationship with the UK is pretty fundamentally important, because your goods need to go through the UK,' he said.

Transport Secretary Chris Grayling (pictured on BBC Breakfast today) said he was 'optimistic' a deal would be reached in the coming days

In a combative performance at PMQs, Mrs May defended her position, insisting no terms would be finalised until an overall deal was struck with the EU next year, and said the sides were 'close' to making progress on the first phase of negotiations.

DAVID DAVIS SAYS BREXIT IMPACT COULD BE ON SCALE OF CREDIT CRUNCH David Davis appeared before the Brexit select committee today Brexit could have as big an impact on the British economy as the 2008 credit crunch, David Davis warned today. The Brexit Secretary said quitting the Brussels club will amount to a 'paradigm change' comparable with the biggest financial slump since the Depression of the 1930s. He made the extraordinary comment as he was called before the Brexit select committee where he admitted no Brexit impact assessments have been carried out by Whitehall. He said an assessment of the potential impact of Brexit on different sectors of the UK economy would not necessarily be 'informative' as economic models 'have all proven wrong' in the past. Mr Davis told the committee: 'You don't need to do a formal impact assessment to understand that if there is a regulatory hurdle between your producers and a market, there will be an impact.' Advertisement

The defence came after Mrs May was rebuked for playing a 'risky game' by keeping her top team and the DUP in the dark over plans for a 'soft Brexit' deal with Brussels.

Mrs May was repeatedly urged to toughen up her stance by MPs in the Commons.

Tory backbencher Jacob Rees-Mogg said her Brexit red lines needed a 'new coat of paint', while hardline Eurosceptic Peter Bone offered to accompany her to Brussels to 'sort out' the Eurocrats.

Mrs May said: 'We're leaving the EU, we're leaving the single market and the customs union but we will do what is right in the interests of the whole United Kingdom and nothing is agreed until everything is agreed.'

There is growing alarm on the Tory benches after David Davis confirmed some sectors of the UK economy could have to align with the EU after Brexit to resolve the Irish border issue.

Former leader Iain Duncan Smith – who has acted as a bridge between No 10 and Eurosceptic MPs until now – described the proposal as 'intolerable' and suggested it was time to walk away from the talks.

'We are beginning to stare at the edge of what is a price that we simply cannot afford to pay,' he said.

DUP MP Jim Shannon challenged Mrs May over the situation at PMQs this afternoon.

'Can you give a specific commitment that nothing will be done that creates any barrier constitutionally, politically, economically, or regulatory between NI and the rest of the UK?' he asked.

She replied: 'The simple answer is yes. He will know as other members will that there are already areas where there are specific arrangements between NI and Republic of Ireland, for example specific energy markets...

'We want to make sure there is no hard border, that is what we're working for, we are also working to protect the constitutional integrity of the UK and the internal market of the UK and I think we share those aims.'

Mr Bone, a leading Brexiteer, drew gales of laughter in the chamber by offering to act as the PM's enforcer.

'If we have a problem would it help if I came over to Brussels with you to sort them out?' he said.

Mr Rees-Mogg, who yesterday congratulated the DUP on scuppering the proposed divorce deal, said: 'Will she apply a new coat of paint to her red lines... they are looking a bit pink.'

Labour leader Jeremy Corbyn labelled the Government's Brexit approach a 'shambles'. But Mrs May shot back that Labour was in chaos over whether it wanted to stay in the European single market or not.

'The only hard border around is right down the middle of the Labour Party,' she said.

Labour leader Jeremy Corbyn labelled the Government's Brexit approach a 'shambles'. But Mrs May said Labour was in chaos over whether it wanted to stay in the European single market

Peter Bone offered to come to Brussels with the PM and 'sort them out'. DUP MP Jim Shannon asked Mrs May for a commitment that Northern Ireland would not diverge from the UK

Tory MP Jacob Rees-Mogg warned Mrs May she needed to put a 'new coat of paint' on her Brexit red lines

Irish Taoiseach Mr Varadkar risked fuelling the row by arguing that the DUP did not represent everybody in Northern Ireland.

'We need to bear in mind that there are a lot of different voices in Northern Ireland; we need to listen to them all, and all parties in Northern Ireland, not just one,' he told the Dail parliament in Dublin yesterday.

He said his Government wanted to begin phase two of the UK-EU talks to address post-Brexit trade and acknowledged it was in the Republic's own interest.

'We want to move to phase two but if it is not possible to move to phase two next week then we can pick it up in the new year,' he said.

He added that he stood by the text of a draft deal 'agreed' on Monday. In a phone call with Mrs May later, Mr Varadkar 'reiterated the firm Irish position', according to a spokesman.

Government sources insisted that the proposal on the Irish border was only a 'backstop' designed to open the door to trade talks this month.

Mr Davis, pictured giving evidence to MPs today, was in Brussels with Mrs May this week