EU, UK to hold 'intense' negotiations on Brexit deal

The 27 countries staying in the European Union after Britain leaves gave the go-ahead on Friday for their chief negotiator to hold another round of intense and secret negotiations with London in a bid to secure a deal, two senior diplomatic sources said.

Michel Barnier and his British counterpart Stephen Barclay had earlier held what both sides called a "constructive" meeting in Brussels as Britain's scheduled departure date of Oct. 31 grew closer.

Their meeting followed a burst of optimism after the British and Irish prime ministers said they had found "a pathway" to a possible deal.

The United Kingdom is due to leave the world's biggest trading bloc on Oct. 31 and despite the flurry of activity, it remains uncertain on what terms it will leave, when, and even whether it will do so at all.

"It's a tunnel with a very small light at the end of it," one of the diplomats said, indicating there was not too much hope on the EU side that a divorce deal could be sealed before the end of the month.

The "tunnel" - EU jargon for intense and secret talks - will go through the weekend and possibly as long as until Tuesday next week, the sources said.

EU ministers convene in Luxembourg for a last preparatory meeting before an EU summit next Thursday and Friday.

The diplomatic sources said Barnier disclosed little detail of the latest EU-UK exchanges to the member states but that Britain was "more open" to address Irish concerns over arrangements for its border with the British province of Northern Ireland.

"There is movement on the UK side on both customs and consent that bode well for chances for progress," said a senior EU diplomat, explaining the rationale Barnier presented to the national envoys to justify going into more intense talks.

No other details from the meeting between Barnier and Barclay were immediately disclosed.

"Be patient," Barnier told reporters as he left the meeting and went on to brief the 27 EU states. "Brexit is like climbing a mountain. We need vigilance, determination and patience."

Earlier on Friday, in the Cypriot capital Nicosia, European Council President Donald Tusk said he had received "promising signals" from Irish Prime Minister Leo Varadkar that a deal was still possible.

But Tusk tempered this by saying: "Of course, there is no guarantee of success and the time is practically up. But even the slightest chance must be used."

Sterling see-sawed on the various pronouncements, which came at the end of a tumultuous week in which Brexit negotiations have shifted wildly, starting with a public row between London and Brussels.

Both sides are anxious to avoid taking the blame should the deadline for Britain's departure arrive with no deal secured.