Michel Barnier said he and Mr Davis have made a “decisive step” towards agreeing a joint legal text on the UK’s EU withdrawal.

The Brussels negotiator also confirmed he would take the agreement to European Council of EU leaders for approval at Thursday's summit.

Speaking alongside Mr Davis at a Brussels press conference, Mr Barnier said that there were still outstanding issues relating to the Irish border, adding: “We are not at the end of the road and there is a lot of work still to be done.”

Mr Barnier also announced that a transition period of "limited time" had also been agreed where EU citizens arriving in the UK will enjoy “the same rights and guarantees” as those present before Brexit.

And the UK will be able to negotiate trade agreements with outside countries during transition.

Mr Barnier said: "What we are presenting to you today, here with David Davis, is a legal text.

"A joint legal text which constitutes in my mind a decisive step because we were able this morning to agree, and after all those days and nights of hard work, on a large part of what will make up an international agreement for the ordered withdrawal of the United Kingdom.

"A decisive step remains a step, we are not at the end of the road and there is a lot of work still to be done on important subjects including Ireland and Northern Ireland."

Speaking after Mr Barnier, the Brexit Secretary said that the agreement represented a "significant step" on ensuring a time-limited implementation period after Brexit which would deliver the certainty demanded by business.