Reports in the UK suggest there will be no Brexit deal tonight as negotiators continue intense talks in Brussels.

The EUs Chief Brexit Negotiator Michel Barnier is currently briefing ambassadors from the remaining 27 on the status of the negotiations.

It is believed he has told them that the only issue remaining to be resolved is how VAT on trade between the North and Britain will be managed.

A Downing Street spokesman said the UK Prime Minister Boris Johnson has told his Cabinet that there is a chance of reaching an agreement – but a deal has not yet been reached.

The spokesman said talk between the UK Government and the DUP are ongoing.

It had been hoped that the talks would conclude tonight; however it now appears they continue into tomorrow morning.

Mr Johnson could then call in his Cabinet to sign off on any deal before travelling to the EU Summit in Brussels, where leaders will discuss the plan.

German Chancellor Angela Merkel, left, and French President Emmanuel Macron in Toulouse, 16-10-2019. Image: AP Photo/Frederic Scheiber

This afternoon, the German Chancellor Angela Merkel said she was encouraged by the noises coming from the talks.

“The news we are hearing from Brussels could be worse – put it that way,” she said.

“Of course, we are waiting for the outcome of Michel Barnier’s talks with the British negotiators.

“We have always campaigned for an orderly exit of Great Britain from the EU.”

Meanwhile, the French President Emmanuel Macron says he 'wants to believe' a deal is being finalised.

British Prime Minister Boris Johnson at 10 Downing Street in London, 15-10-2019. image: AP Photo/Matt Dunham

Earlier the European Council President Donald Tusk said he hope there would be an agreement by midnight.

“Negotiations are ongoing as we speak,” he said.

“I was hoping that this morning we would receive a complete negotiated legal text of the agreement.

Yesterday, I was ready to bet that a deal had been reached and was certain.

“Today some doubts appeared form the British side. The situation in the British Parliament is complicated.”

If a deal is approved at the EU Summit, British MPs will be asked to vote on it at a special Saturday sitting of the House of Commons.

It remains unclear whether Mr Johnson will be able to command the support of the DUP or the so-called ‘Spartans’ – the 28 Tories that voted against the previous Brexit Withdrawal Agreement three times.