The Tanaiste says there may be some room for manoeuvre in the agreement reached between the EU and UK on Brexit.

It comes after the Spanish Prime Minister again threatened to "veto" the Brexit agreement.

Pedro Sanchez made the comments after discussions on the future of Gibraltar with the British Prime Minister Theresa May.

No single state can block the deal, as under EU rules the withdrawal treaty will be adopted by a qualified majority rather than a unanimous vote.

However, a no vote from Spain - one of the largest states in the union - would cast a cloud over the vote as EU leaders work to maintain a united front on Brexit.

Mr Sanchez thinks the UK and EU positions remain "far away" and he said in a tweet that he needed to see changes.

Spain wants any declaration on a new EU-UK relationship to make clear that any decisions about Gibraltar, a disputed British overseas territory, would only be taken in direct talks with Madrid.

Speaking outside Downing Street yesterday, Theresa May said she had spoken with Mr Sanchez and was confident a deal would be reached.

However, Mr Sanchez said his government "will always defend the interests of Spain", adding: "If there are no changes, we will veto Brexit."

After my conversation with Theresa May, our positions remain far away. My Government will always defend the interests of Spain. If there are no changes, we will veto Brexit.

— Pedro Sánchez (@sanchezcastejon) November 22, 2018

Tánaiste and Foreign Affairs Minister Simon Coveney said he hopes there can be a resolution.

Simon Coveney. Photo: Sam Boal/RollingNews.ie

He observed: "I think you will see Britain and Spain working with Michel Barnier and his team - and indeed other European leaders - to find a resolution to this."

He added that any solution is likely to come in the form of a 'clarification' rather than changing the wording of the already agreed withdrawal treaty.

EU summit

The latest developments come only days before European leaders begin their crucial summit in Brussels.

The European Council meeting has been scheduled for leaders to approve the two draft agreements - on the withdrawal and 'future relationship' between the EU and UK - reached between negotiators on both side.

Theresa May will travel to Brussels tomorrow for last-minute talks with European Commission President Jean-Claude Juncker ahead of the summit.

Meanwhile, Mrs May faces mounting domestic political pressure over the Brexit agreements reached with Brussels, with politicians on all side opposing the withdrawal deal.

A number of pro-Brexit Conservative MPs and the DUP have upped their criticism of the 'backstop' plan to avoid a hard border in Ireland.

The DUP, which is propping up Theresa May's government, has insisted they want "changes" to the withdrawal agreement.

The party's MP Sammy Wilson said: "The government needs to recognise that there is no enthusiasm for the withdrawal agreement across all sides of the House of Commons."

Amid opposition from Labour, the DUP and some members of her own Conservative party, Mrs May will need to secure significantly more support in order for the deal to make it through parliament.

Reporting by Stephen McNeice and IRN