An EU diplomat has told Sky News that there "might now be a narrow path" to a Brexit trade deal "visible", but only "if negotiators can clear the remaining hurdles in the next few days".
"There has been some progress in the negotiations over the last few days, but sometimes substantial gaps still need to be bridged," they told Sky's Europe Correspondent Adam Parsons.
UK, EU HEAD FOR SUPPER SHOWDOWN OVER BREXIT TRADE DEAL
A second EU diplomat told our correspondent that chief negotiator Michel Barnier was "more upbeat" than in his previous appraisal of the Brexit talks.
"There seems to be movement but a deal is still far from certain," they added.
It comes after the two sides agreed to "go the extra mile" and continue discussions on a trade deal ahead of the end of the transition.
Barnier earlier updated the bloc's ambassadors on the state of play in the talks.