The Maltese Prime Minister, and current President of the European Council, Joseph Muscat, has said Brexit "might not happen" and urged UK politicians to fight for a second referendum on the country's exit terms.

Mr Muscat, who is particularly well briefed on the Brexit talks while his country holds the year long rotating presidency of the European council, told a Dutch newspaper he thought the tide could be turning on Brexit.

“The will of the people can have disastrous consequences, history teaches us,” Mr Muscat said in an interview with De Volkskrant. “I could name some examples, but they’re so horrendous they’d raise the wrath of my British friends.

“For the first time, I’m starting to believe that Brexit will not happen. I am seeing hopeful signs that indicate things will change. I see encouraging signs that the tide is turning.

"I’m not saying the Brits have made a mistake, but the mood is changing. People see that their fundamentally valid vote has been given an answer that does not offer a solution.

“The referendum was democratic, but has resulted in a situation in which everyone loses. Doubt is creeping in.

"It would be good if a political leader in the UK stands up and is courageous enough to address this new situation. Someone who says: let’s put the Brexit end-deal to a popular vote.”

Currently, the UK's exit terms will be subject to a vote in the UK Parliament. But if Parliament rejects the terms, it would not keep the UK in the European Union, but merely exit on no deal at all.

Theresa May and the Brexit Secretary, David Davis, have both argued that holding a referendum on a withdrawal agreement would encourage the EU to offer unfavourable terms in a hope of keeping the UK in the EU.

But pro-EU sources point out that would be a considerable risk on Brussels' part too. Unfavourable trading terms are unfavourable for both sides, and if the UK voters accepted them, EU countries would pay a price too.

Mr Muscat also dismissed suggestions the UK was unprepared for the negotiations.

Michel Barnier seeks clarification over key issues in Brexit talks

"People who say the Brits don’t know what they are doing are wrong,” he said. “I have lived in Britain, I know the British mentality. A non-prepared British government official simply doesn’t exist.