Theresa May has secured concessions from Brussels to keep the whole of Britain in a customs union in the aftermath of Brexit – avoiding a hard Irish border, The Sunday Times reports.
The agreement will include an "exit clause" designed to convince Brexiteers that remaining in the customs union is only temporary, the newspaper said.
Preparations for a final deal are also reportedly "far more advanced than previously disclosed", and will lead to a document of around 50 pages being published.
The cabinet will meet on Tuesday to discuss Mrs May's plan, and she hopes there will be enough progress by Friday for the European Union to announce a special summit, the report said.
A Downing Street spokesman called the newspaper report "speculation".
He said: "The prime minister has been clear that we are making good progress on the future relationship and 95% of the withdrawal agreement is now settled and negotiations are ongoing."
Sky's political correspondent Lewis Goodall said the reported agreement did not solve the Brexiteer problem on the backbenches.
He said: "It doesn't solve a fundamental problem, which is that if the agreement is still based on the Chequers plan – if it involves the so-called common rule book i.e. regulatory alignment of all sorts of manufactured goods between the EU and UK – it will not satisfy the Brexiteers in any way and will be a crucial stumbling block for her.
"I think it would lead to at least a couple of dozen of Conservative MPs voting against her in which case she would need the support of Labour MPs and that is a big ask, as she would be asking them to save her government."
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The report comes as dozens of entrepreneurs demanded a "people's vote" on the final terms of Britain's exit from the EU.
More to follow…
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