Britain and the EU agree Brexit divorce bill - reports

British and EU negotiators have finally reached a deal over the Brexit bill. Photo / 123RF

British and EU negotiators have reached a deal over the Brexit divorce bill, signalling a key breakthrough in negotiations.

Sources on both sides confirmed that an agreement-in-principle has now been reached over the EU's demand for a €60 billion ($103b) settlement, according to the Daily Telegraph.

The Daily Telegraph reports that the final figure, which was deliberately left open to interpretation, will total between €45b ($77.2b) and €55b ($94.3b).

Two sources confirmed that the terms were agreed at a meeting in Brussels late last week after intense discussions.

Earlier, the Daily Mail reported that British Prime Minister Theresa May would keep the final Brexit bill a secret.

May is hoping the offer will trigger a breakthrough next month when EU leaders gather in Brussels to decide whether "sufficient progress" has been made on divorce issues to allow talks to turn to trade.

But ministers remain concerned about progress on what will happen to the border in Ireland, where Dublin is making increasingly belligerent demands.

EU's chief negotiator Michel Barnier hinted at the breakthrough earlier this week when he said: "The moment of truth is approaching."

In an attempt to obscure the exact size of the bill, British officials are understood to have presented a complex payment method that will ensure the money is not paid off in one large sum.

The Sterling spiked $1.33 against the dollar as traders piled into the currency. It also closed above €1.12 against the euro.