Theresa May has said a “small number” of issues still remain to be resolved as negotiators strive to close the gap in the Brexit talks.

The Prime Minister briefed the Cabinet on the progress of the discussions as talks continued in Brussels between senior EU and UK officials.

Earlier, Mrs May’s de facto deputy David Lidington raised hopes that a deal was close – saying they were “almost within touching distance”.

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David Lidington, arriving for Cabinet says a Brexit deal is close (Victoria Jones/PA)

But at the weekly gathering of senior ministers in No 10, Mrs May said there was still more work to be done.

“The Prime Minister told Cabinet that since it had last met, negotiations had continued in Brussels and good progress had been made,” the Prime Minister’s official spokesman said.

“However the PM said there remained a small number of outstanding issues as the UK pushes for the best text that can be negotiated.”

In Brussels, European Commission vice president Frans Timmermans said: “It is clear that although we are making progress we are not there yet.”

Ministers remain on standby to return to Downing Street if the talks – which went late into the night for a second successive day on Tuesday – do make a breakthrough.

But amid continuing unrest among Tory MPs – including some ministers – at the Government’s approach, former foreign secretary Boris Johnson accused Mrs May of deliberately stage-managing the delays for political effect.

“No one is fooled by this theatre. Delay after staged managed delay. A deal will be reached and it will mean surrender by the UK,” he tweeted.

“We will be doomed to remain in the customs union and under Brussels’ regulatory control. People did not vote for colony status.”

With Wednesday widely seen as the deadline for an agreement if the EU is to summon a special summit this month to approve a deal, Mr Lidington insisted it was still possible within that timeframe.

“Still possible, but not at all definite I think pretty much sums it up,” the Cabinet Office Minister told the BBC Radio 4 Today programme.

He added: “We are not quite there yet. This was always going to be an extremely difficult, extremely complex negotiation, but we are almost within touching distance now.

“But as the PM has said, it can’t be a deal at any price. It has got to be one that works in terms of feeling we can deliver on the referendum result and that is why there is a measure of caution.”

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Brexit Secretary Dominic Raab leaves No 10 after Cabinet (Victoria Jones/PA)

Mr Lidington acknowledged Wednesday would be an an “important” moment, but refused to be drawn on suggestions it will mark the point the Government has to start putting into action its no-deal contingency plans if there was no agreement.

“I am not going to put dates to particular ascribed actions,” he said.

He added however: “There does come a point at which contingency plans have to be stepped up simply so that in that eventuality, the preparations have been done.

“You may have to run the two things in parallel.”

Nevertheless, without agreement from EU leaders on a deal in November, Mrs May’s prospects of putting it to a parliamentary vote before Christmas will recede sharply.

That in turn would raise questions as to whether the Government could get through the legislation it needs before the UK formally leaves the EU on March 29.

Mrs May meanwhile faces continuing unrest among Brexiteer ministers who fear she is preparing to give too much ground to Brussels in her anxiety to get an agreement.

Around half a dozen ministers, including Brexit Secretary Dominic Raab and Environment Secretary Michael Gove, are said to believe a no-deal Brexit would be better than the proposals on the table from Brussels.

The group is reported to have met for drinks at International Trade Secretary Liam Fox’s office on Monday night to discuss their concerns, ahead of the Cabinet meeting.

In her annual Guildhall speech on Monday, the Prime Minister insisted she was not prepared to agree a deal “at any price”.

“Overwhelmingly, the British people want us to get on with delivering Brexit, and I am determined to deliver for them,” she said.

“I want them to know that I will not compromise on what people voted for in the referendum. This will not be an agreement at any cost.”