Prime Minister Theresa May is to offer free movement to Irish citizens in and out of Britain after the UK leaves the EU.
News of the offer of a "Schengen area" between Britain and Ireland came as the Government prepares to publish a formal proposal to the EU on the future of the Northern Irish border.
By making this offer, the Prime Minister hopes that Leo Varadkar, the Irish Taoiseach, will become a key ally for Britain during the tough withdrawal negotiations over the next 20 months.
Varadkar has expressed his frustration at the failure so far of the UK Government to ensure there is no return to the "hard" border between the Northern Ireland and the Republic.
Britain will also offer to track goods across the Irish border with CCTV cameras and automated number plate technology as part of a light-touch customs regime.