EU set to agree Brexit transition deal with UK after striking an agreement over Irish border
The border deal removes the last stumbling block to a transition agreement
BRUSSELS is preparing to offer a two year Brexit "transition" deal in January - after a breakthrough agreement on the future Irish border.
Sources last night claimed the UK and EU were close to a deal to avoid a "Hard Border" in Ireland once we leave.
The vital agreement is the last stumbling block towards both sides moving onto the second phase of Brexit talks - a future trade deal.
that the EU was also now happy to speed up approval for a two-year transition deal that will effectively delay a full Brexit until 2021 but give politicians and business extra time to prepare.
A British Government source said: "In return for making progress on the withdrawal agreement the EU will move on transition by the end of January with a fair wind."
Under the outline Irish agreement, the UK has proposed devolving a package of powers to Belfast so it doesn't diverge from the Republic and the EU on issues such as energy and agriculture after Brexit.
Critically the UK would still be able to move away from EU rules.
The unionist DUP has been adamant that the North cannot remain out of step with the UK post-Brexit.
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DUP MP Ian Paisley Jr last night gave a cautious welcome to the news.
He said: "I'm for continued co-operation not convergence.
"But the Republic of Ireland has got to prove it will be a good neighbour and drop its nationalistic speak."