Prime minister Keir Starmer says stronger ties with the EU will benefit British jobs, energy bills and border control. His comments come ahead of a summit in London where EU leaders will meet UK officials.
A deal giving the UK access to a major EU defence fund could be announced, though disagreements over fishing rights and a youth mobility scheme may cause delays.
He met with European Commission president Ursula von der Leyen on Friday during a summit in Albania. EU foreign policy chief Kaja Kallas said work on the defence deal was "progressing but we're not there yet."
If agreed, this would be the UK’s third major international deal in two weeks, following new trade agreements with India and the US.
Starmer said: "First India, then the United States - in the last two weeks alone that's jobs saved, faster growth and wages rising. More money in the pockets of British working people, achieved through striking deals not striking poses. Tomorrow, we take another step forward, with yet more benefits for the United Kingdom as the result of a strengthened partnership with the European Union."
But Conservative leader Kemi Badenoch said she is "worried" about what the prime minister may have agreed to. She warned: "Labour should have used this review of our EU trade deal to secure new wins for Britain, such as an EU-wide agreement on Brits using e-gates on the continent. Instead, it sounds like we're giving away our fishing quotas, becoming a rule-taker from Brussels once again and getting free movement by the back door."
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