The US is ready to do a trade deal with the European Union ahead of any agreement with Britain, it has been reported.

Having promised Britain favourable treatment, Donald Trump has made reaching an agreement with the EU a higher priority.

According to The Times, the change of heart by the US president follows discussions with Angela Merkel, the German chancellor, last month.

Mr Trump had been pushing for trade deals with individual countries, but was told that the US would have to negotiate with the EU as a whole.

The position had been in a state of flux following Mr Trump's victory after the new administration shelved the Transatlantic Trade and Investment Partnership (TTIP) trade deal between the EU and US.