The EU and UK have agreed a draft agreement on their future relationship, paving the way for a Brexit deal to be finalised this weekend.
The political declaration – outlining how trade, security and other issues will work – has been “agreed in principle”, the European Council says.
London and Brussels have already agreed the draft terms of the UK’s exit from the EU on 29 March 2019.
Theresa May will make a statement to MPs later on Thursday.
European Council President Donald Tusk said in a tweet: “I have just sent to EU27 a draft Political Declaration on the Future Relationship between EU and UK. The Commission President has informed me that it has been agreed at negotiators’ level and agreed in principle at political level, subject to the endorsement of the leaders.”
If the withdrawal agreement and the political declaration are signed off at an EU summit on Sunday, the prime minister will then turn her attention to getting the deal through the UK Parliament, where there is not thought to currently be a majority in favour of it.
It follows a meeting in Brussels on Wednesday evening between Mrs May and European Commission president Jean-Claude Juncker.
Downing Street has repeatedly made clear that agreement is needed on the future framework in order to press ahead with the legally-binding withdrawal agreement.
Draft on future UK-EU relationship ‘agreed’}