Angela Merkel has for the first time signalled that she is willing to compromise on the issue of freedom of movement in the wake of Britain’s Brexit vote.

In comments seen as a significant shift, the German Chancellor suggested that the European Union needs to “discuss further” the rules around freedom of movement.

It suggests for the first time that Britain may be able to gain full control of its borders while still retaining access to the single market, something that EU leaders including Jean-Claude Juncker have previously said would be impossible.