The Irish deputy prime minister admitted there is still a great deal of work to do but that he was hopeful of a breakthrough in the coming days. He added that the UK and EU negotiations have to be given “time and space” as they continue on Boris Johnson’s Brexit plans for Northern Ireland. Technical talks continue today ahead of this week’s European leaders’ summit, during which a new deal could be agreed between Boris Johnson and his EU colleagues.

Speaking at a meeting of the bloc’s foreign affairs ministers, Mr Coveney said: “I think on Brexit, the less we say the better.

“We need to give time and space to Michel Barnier, and his task force, and the British negotiating team. ‘I think it’s pretty clear what we’re trying to do but there are pretty detailed discussions now and we need to give them time and space for that to happen – Hopefully we make progress today on those.”

Despite his positive message, Mr Coveney urged “caution” as he spoke to reporters in Luxembourg.

“The message I would give: We need to be cautious,” he warned.

“We have spent three years trying to get an agreement between the two sides that have made progress at different times but certainly the last few months have been difficult.

“I think… a deal is possible and it’s possible this month – it may even be possible this week. But we’re not there yet and as Michel Barnier said yesterday, there is still a lot of work to do.”

Mr Coveney refused to offer a new deadline for the new talks after this weekend’s rounds ended in a stalemate.

Mr Barnier told senior EU diplomats last that Mr Johnson would have to offer more concessions if he wants an agreement by the end of the week.

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He is understood to have told David Frost, Britain’s chief negotiator, that the EU is prepared to support a new plan in principle even if a legal text could not be finalised in time for the summit – provided the Prime Minister gave more ground on customs arrangements for Northern Ireland.

Brussels is concerned with the complexity of the offer tabled by Mr Frost during a round of intense weekend negotiations.

Under the plan, goods entering Northern Ireland from Great Britain would be charged differing trade tariffs depending on whether they entered the Irish republic.

Mr Barnier warned diplomats that the proposals were “untested” and created risks for the single market.

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One European source said: “It will be difficult to have a legal text for the European Council but still not impossible if there’s some movement.

“The main problem remains the customs arrangements.The UK’s proposals are untested and create risk for the single market.

“The UK’s ideas is to make a distinction between goods for UK and Northern Ireland, and for EU. That creates two customs areas on the island of Ireland.”

Another official described the negotiations as “mindbogglingly” complex.

They added: “This requires careful legal work you can’t do hastily. That makes it all very tricky.”

Brussels sources have played down chances of a deal ahead of this week’s European leaders summit.

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