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European Union and Britain are to hold a leaders' summit scheduled for October 17-18, and if there is enough progress, there would be the second summit to be held on November 17-18.

Mrs May has rejected the EU's proposal for a "backstop" to ensure there is no return to a hard border between Northern Ireland and the Republic after Brexit, arguing that it would effectively impose a border between the North and the rest of the UK.

Ireland's deputy prime minister has hit out at leading Brexiteers for pushing "crazy" ideas about what a no-deal withdrawal from the European Union would mean.

The EU has previously had an issue with that as it fears Britain could use the special access of Northern Ireland to the bloc's single market to push goods that would not have to conform with high EU norms and could hence be sold cheaper.

A tentative meeting has also been penciled in for November if there is still work to be done. Chief negotiator Michel Barnier's team gave European ambassadors an outline of his proposal on Friday, and will formally present it to them - at least in part - on Wednesday.

Analysts at Commerzbank said a deal remained a long way away, with both sides yet to agree on customs arrangements for the Irish border and Prime Minister Theresa May allegedly trying to gain support among opposition Labour party lawmakers to get a deal voted through parliament.

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Mr Juncker said "I think we need to refrain from this scenario of a no-deal".

Mrs May has been invited to address the other 27 European Union leaders over dinner on 17 October, to give her a chance to convince her peers that a solution can be found to the sticking points in Britain's tortuous negotiations to leave the bloc.

Former Brexit secretary David Davis, who quit over Chequers, said: "This shows clearly that No 10's claim that "there is no alternative to Chequers" is just wrong". "Now you discover new problems nearly daily, on both sides".

The EU and United Kingdom are at odds over the Irish border and the Prime Minister's Chequers plan is under attack from Brexiteers in her own party.

The add-ons will include counter-terrorism cooperation, foreign policy and defence coordination, and other ways in which Britain and the European Union will work together, such as on recognition of each other's social security and qualifications systems, agreements on transport connectivity and some reciprocal arrangements to allow people to work in each other's territories.

A senior government insider has revealed a trade deal with Chile is expected to be signed in a few months in an agreement nicknamed "the avocado deal" due to the South American country's surplus on the popular fruit.