'Landing zones' for Brexit trade deal are in sight, says Irish prime minister

A Brexit trade deal could be just days away after the Irish prime minister said "landing zones" for an agreement are now in sight.

France is understood to have accepted that its fishing rights in UK waters will be reduced after the transition period ends on December 31, lowering one of the biggest hurdles in the path of a deal.

The trade agreement could be announced as early as Monday, sources in Brussels suggested – but only if both sides made compromises on issues such as fishing and subsidy law.

Michel Barnier, the EU's chief negotiator, has called foreign ministers to a meeting on Friday at which he is expected to update them on the progress of the talks, increasing speculation that a deal is close.

But sources in the UK urged caution, saying that while it might be clear by next week whether a deal is achievable, the deal itself was unlikely to be signed by then. Boris Johnson has told his Cabinet that trade talks could still fall apart and it was "far from certain" that an agreement would prove possible.

Micheál Martin, the Irish Taoiseach, told the Bloomberg New Economy Forum that both sides could see "the landing zones" around the deal, warning Mr Johnson that no deal would be "politically damaging" for Britain and urging him to get the agreement done.

"Will the decision be made in London to go for it and say let's get a deal done? Some of us think that's an issue that has yet to be determined," Mr Martin said.

Ireland is one of the countries most at risk from a no-deal Brexit and has kept in close contact with European Commission negotiators throughout the Brexit process.

It is understood that both sides are working from common texts and have recently exchanged proposals over fishing rights.

Emmanuel Macron, the French president, is understood to have accepted that France will lose fishing opportunities once Britain regains control of its waters, while EU nations have been mulling a redistribution of their quotas to soften the hit on nations whose trawlers are dependent on UK waters.

The EU wants a long-term agreement on quotas while Britain wants annual negotiations, with one possible compromise being a multi-year deal on some stocks and annual talks on others.

One source on the British side said: "We don't expect a deal to happen by Monday or Tuesday, but it could be clear by Monday or Tuesday whether we are going to get a deal."

Tory Brexiteers have warned Mr Johnson that he will risk splitting the party if he "sells out" by allowing the EU to have any say over British laws in future.

Former Cabinet minister Theresa Villiers said: "This is make or break time – he can either head down the sell-out route like so many previous prime ministers, or he can genuinely get Brexit done by resisting EU attempts to bind us into their laws and their court. Whichever way he goes, this issue will define his premiership."

A Downing Street spokesman said: "We are working hard to find solutions which fully respect UK sovereignty, but it is far from certain that an agreement will prove possible and time is now very short."

Mr Martin's comments came as it emerged that Mr Barnier plans to brief EU ambassadors – the first time in more than two weeks of intensified negotiations that he has formally updated envoys of the 27 remaining member states on the talks.

If the EU's chief negotiator is in a position to give details of a negotiated deal, it could theoretically be announced on Monday. It would then need the approval of EU leaders at a summit, most likely on December 10, and the European Parliament.

The meeting of ambassadors in Brussels could be delayed until Sunday if Mr Barnier senses a breakthrough could be close but not yet there on Friday.

However David Davis, the former Brexit secretary, said: "The truth is this is going to go on until Christmas because if they come to an agreement before then someone like the French fishermen will kick up a fuss.

"The deal will be done at the last minute and there will be some sort of freeze after January 1 until the deal is ratified by the EU member states."