Theresa May and Jeremy Corbyn's negotiating teams met for four-and-a-half hours in the Cabinet Office on Thursday for "detailed" talks.

The"detailed and productive technical talks" are aimed at finding a consensus Brexit position ahead of a crunch summit of European Union leaders in Brussels on April 10.

"The government and the opposition hope to meet again tomorrow for further work to find a way forward to deliver on the referendum, mindful of the need to make progress ahead of the forthcoming European Council," the Downing Street spokesman said.

Any decision on an extension to Brexit to prevent the UK crashing out of the EU on April 12 will be taken by EU leaders at that summit.

German Chancellor Angela Merkel said she was still hopeful that a no-deal Brexit could be avoided as "where there's a will, there's a way".

Speaking in Dublin alongside Irish premier Leo Varadkar, she said: "We will simply have to be able to do this. We have to be successful and we hope for a solution that we can agree together with Britain."

Varadkar said: "Matters continue to play out in London and I think we need to be patient and understanding of the predicament that they are in.

"But of course, any further extension must require and must have a credible and realistic way forward."

The talks in Westminster have highlighted divisions within both the Tory and Labour ranks.

Backbench Labour MPs have issued a warning to Corbyn not to include a second Brexit referendum in any compromise deal thrashed out with May.

A group of 25 Labour MPs wrote to Corbyn warning that a second public vote would "divide the country further and add uncertainty for business".

They said the policy adopted at Labour's autumn conference made clear there was no need for a public vote if the party secures its preferred customs union deal, which was now "within reach".

Meanwhile, a string of cabinet ministers signalled that Tories could be prepared to compromise on Labour's key demand of a customs union arrangement with the EU - an idea loathed by Brexiteers.

Attorney General Geoffrey Cox said avoiding a customs union was not an "article of faith", while Chancellor Philip Hammond said Tories should be ready to look at it.

Health Secretary Matt Hancock told BBC Radio 4's Today program that he preferred May's deal to a customs union, but added: "I have spoken about the problems of a customs union and I don't think it's as good for the country. But I also want to deliver Brexit."

With time running out before May must inform European Council president Donald Tusk of the UK's proposal, Downing Street appeared to indicate that it may not be necessary for MPs to approve any consensus deal ahead of the summit.

The PM's official spokesman said the important thing was to provide the leaders of the other 27 EU states with "clarity" on the way forward in order for them to feel able to offer a further extension to the Brexit process.

May will be expected to spell out the UK's plans in a letter to Tusk in sufficient time for the other 27 leaders to consider them before they gather in Brussels on Wednesday evening.

The House of Lords was poised for an all-night sitting to steer through a backbench Bill designed to stop the UK crashing out of the EU next week, after it cleared the Commons in a single day on Wednesday.

Australian Associated Press