PA:Press Association Britain and the EU are close to striking an agreement on the Irish border
The vital agreement is the last stumbling block towards both sides moving onto the second phase of Brexit talks – a future trade deal.
The Times reported 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.