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Theresa May to return to Brussels after talks with EU fail to finalise Brexit deal

Britain insists a summit to "rubber stamp" the agreement can still go ahead, but Sky sources say Angela Merkel may still pull out.

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Theresa May will return to Brussels on Saturday after a meeting with Jean-Claude Juncker failed to finalise a key Brexit agreement.

The prime minister held talks with the European Commission president in Brussels to flesh out a framework on the UK's future relationship with the EU.

But despite hopes of signing off on a deal on Wednesday night, Mrs May admitted there were "remaining issues".

EU Commission President Jean-Claude Juncker (R) welcomes British Prime Minister Theresa May for a meeting at the EU Headquarters in Brussels on November 21, 2018. - The British Prime Minister on November 21 briefly escaped the Westminster bear pit to bring her Brexit battle to Brussels, just four days before the divorce deal is to be signed. (Photo by JOHN THYS / AFP) (Photo credit should read JOHN THYS/AFP/Getty Images)
Image: The PM met Jean-Claude Juncker for almost two hours

She talked up the pair having made "further progress" in a "very good" nearly two-hour meeting.

The prime minister added "sufficient direction" had been given to the negotiators and that their talks would start "immediately".

A Brussels source did not immediately confirm Mrs May and Mr Juncker's next meeting, only saying: "We take it day by day."

The failure to finalise a deal has raised questions over whether the EU summit on Sunday will still go ahead.

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It was originally billed as a chance for EU27 leaders to "rubber stamp" two documents - the withdrawal deal and a non-binding political agreement on the UK's future relationship with Brussels.

But Sky sources have said German Chancellor Angela Merkel is considering not turning up because of concerns it could turn into another negotiation meeting.

The British delegation have insisted that despite no deal being reached yet, the summit could still go ahead as planned.

German Chancellor Angela Merkel looks on during her traditional summer interview at a TV studio of German public broadcaster ARD on August 26, 2018 in Berlin. (Photo by Tobias SCHWARZ / AFP) (Photo credit should read TOBIAS SCHWARZ/AFP/Getty Images)
Image: Sky sources said Angela Merkel could pull out of the summit

Mrs May's negotiations with Mr Juncker are over the seven-page draft text laying out ambitions for a new relationship with the EU once the UK leaves, expected to be on 29 March 2019.

It is understood the sticking points are Gibraltar, goods and fisheries.

Spain's prime minister, Pedro Sanchez, has said he would vote against the draft deal unless he wins assurances over Gibraltar.

Mrs May held a phone call with Mr Sanchez on Wednesday evening, in which the prime minister "reiterated her commitment to agreeing a deal that works for the whole UK family including Gibraltar", Downing Street revealed.

An EU source told Sky News they expected the latest version of the Brexit deal to be published by midday on Thursday.

They said: "Leaders do not feel like negotiating on Sunday. They would like to come to rubber stamp.

"If there are so many open points, there is a danger that it won't manage to do that on Sunday.

"There is concern among all of the EU27. If there is a summit it should be assured that you can [do everything]."

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Mrs May is under pressure to improve the document in the eyes of cabinet ministers and rebel Tory MPs.

Foreign Secretary Jeremy Hunt was reported to have warned the prime minister her Brexit deal risked putting the country into a "Turkey trap" at a cabinet meeting last week.

According to the Daily Telegraph, Mr Hunt told Mrs May the UK could be left in a similar situation to Turkey, which has been negotiating its relationship with the EU for more than 30 years.

Earlier on Wednesday, the prime minister appeared to contradict herself over what will happen if MPs reject her Brexit deal in the Commons.

During fractious exchanges in PMQs, she was asked by former cabinet minister Esther McVey if Britain would leave the EU "come what may".

Mrs May told the Commons that "the United Kingdom will leave the European Union on 29 March 2019".

But earlier in the session, when asked what would happen if MPs vote down the deal, she replied: "If you look at the alternative to having that deal with the European Union it will either be more uncertainty, more division or it could risk no Brexit at all."