The move comes after a bruising week for both main party leaders where they were humiliated at the polls by voters in the local elections.
In a strong indication that a deal is on the cards, Prime Minister Theresa May said: “We have to find a way to break the deadlock – and I believe the results of the local elections give fresh urgency to this.”
But the plan to be agreed by Mrs May and Labour leader Jeremy Corbyn has been branded a “stitch-up” and a “betrayal” by Brexiteers who have vowed to oppose it in Parliament. It also comes as a battle for the soul of the Conservatives has erupted.
Evidence obtained by the Sunday Express appears to suggest that wealthy Remainers are pulling strings behind the scenes and are calling for Brexiteers to be de-selected.
The revelation has further fuelled a furious backlash from Conservatives grassroots leaders who have demanded that Mrs May ditches her “botched deal”.
A top level meeting between the Conservatives and Labour will take place on Tuesday with the aim of ensuring a Brexit deal is finalised this week.
Both parties are licking their wounds after the Tories lost 1,335 council seats and Labour lost 82 instead of making the 400 plus gains expected.
With Nigel Farage’s Brexit Party leading the polls in the European Parliament elections set for 23 May, both the Tories and Labour fear that they will suffer even greater humiliation at the ballot box.
The meeting – described as “the big push” – will involve Mrs May’s deputy David Liddington, Environment Secretary Michael Gove, Chancellor Philip Hammond, Brexit Secretary Stephen Barclay, Business Secretary Greg Clark and chief whip Julian Smith.
On Labour’s side shadow chancellor John McDonnell, shadow Brexit secretary Sir Keir Starmer, shadow business secretary Rebecca Long-Bailey and shadow environment secretary Sue Hayman.
The plan is to bring in Mrs May and Mr Corbyn to finalise a deal which sources have confirmed will be based around a “customs arrangement”.
Mrs May said: “We will keep negotiating, and keep trying to find a way through, because the real thing that matters is delivering Brexit and moving on to all the other issues people care about.”
But Brexiteers warn a customs deal with the EU means Britain stays under Brussels rule and cannot negotiate its own free trade deals with the rest of the world while being forced to accept EU deals.
European Research Group leader Jacob Rees-Mogg warned: “The voters have rejected the failure of the two main parties to deliver Brexit. The solution is to deliver Brexit, not to stitch-up an apology for Brexit.”
A leaked communication from Tory treasurer Sir Mick Davis suggested wealthy Remainer donors are applying pressure on Mrs May.
Sir Mick said to a leading Brexiteer former donor: “You will not be surprised that my Remain donors (who have supported the Party these past two years with far greater sums than Leave voters even though they have accepted that we will be leaving the EU)… believe the MPs who should be deselected come from the ERG.”
This has been taken as evidence by Brexiteers that wealthy Remainers are responsible for a “Brexit in Name Only” policy from the government.
Tory North West Leicestershire MP Andrew Bridgen said: “The revelations from Sir Mick Davis shows that wealthy figures from the Remain establishment are pulling her strings and dictating policy, which has left us with a Brexit in name only.
“In doing so she is going against the vast majority of the Conservative membership and the country. She must be removed as PM before her betrayal is completed.”
In the wake of the local election catastrophe, Tory grassroots leaders also hit out at the plans to cobble a deal together with Labour.
Mike Payne, chairman of the Halifax Conservative Association who was one of six councillors to lose his seat in the area, said: “When the Prime Minister is holed up in No 10 cobbling together another botched Brexit deal with a Marxist rather than listening to what voters, activists and Conservative Party members actually want, it is hardly a surprise that we did so badly in the local elections.”
Wayne Fitzgerald, chairman of the Peterborough Conservative Association where the party lost control of the council and is about to face a crucial Westminster by-election, said: “Trying to hoodwink voters with a deal that doesn’t deliver Brexit was never going to wash.”