The Government is expected to make a fresh offer to all EU member states in the coming days to sign up to the Single Market.
It is understood the Government has given up its offer to EU citizens to stay in the UK as part of a package of reforms in a bid to boost the economy.
However, some EU countries have resisted the Government’s offer to take away the rights of EU citizens who are in the country.
The latest offer comes after the Government made a series of concessions to keep EU citizens in the single market.
It has already granted permission for British nationals to come to the UK without needing to get a work permit, allowing for companies to hire EU nationals without the need to obtain a visa.
Last week, it also extended the right of UK expats to live in the Republic of Ireland and extended the same to EU nationals from Poland, Lithuania and Latvia.
A number of countries are refusing to sign the deal, and some say they will leave the Single European Market as soon as possible.
Read more: How the Government won the Brexit battle in the Lords It is understood that the Government wants the offer of concessions on the rights and entitlements of EU residents to be extended to the rest of the EU, which is already an option.
The Government also wants the UK to retain the right to apply to join the customs union if it wants to join it, but only if there is a “significant reduction” in immigration to the EU.
The Irish government has so far refused to sign off on any of these concessions.