Senior ministers have told the Sunday Express a deal with the European Union is expected to be put to Cabinet on Tuesday, with one saying the meeting will be “significant”.
The Sunday Express has also been told Remainer MPs from Labour, the Tories and Lib Dems hope to launch a new party before 28 January, the last time MPs can stop Brexit.
Preparations are now advanced for the party after a series of regular planning meetings since the summer.
The favourite to lead the party is Labour former frontbencher Chuka Umunna who it is claimed is one of the main organisers along with fellow Labour MPs Gavin Shuker and Chris Leslie, although there is speculation David Miliband could return as leader.
One Labour MP involved said: “If you look at the groups that have coalesced around the People’s Vote campaign and the work that is coming out, it is just a matter of putting the pieces together.”
Another MP said: “There is a massive hole in the centre of British politics at the moment and we have seen an unprecedented amount of private polling for a new party which shows there is a thirst for one out there.
“Clearly this is the going to be the best way to reverse Brexit and getting back into the EU, even if we can’t stop the UK leaving, will be the one of the main policies.”
Sources have said it will be extremely well funded and will have a raft of other policies based around a pamphlet produced by former shadow chancellor Mr Leslie over the summer as it prepares to be a new force in British politics.
Initially, it is expected to be around 17 Labour MPs, who may declare themselves as independents first.
But the plan is to join with the 12 Lib Dem MPs and attract up to 10 Tories with claims that they are targeting Remainers like Anna Soubry, Justine Greening, Phillip Lee and Sarah Wollaston among others.
Brexit news: Chuka Umunna is the favourite to lead the new party
The hope is it will become the third party in the Commons, meaning it will be entitled to weekly questions at PMQs as well as broadcast opportunities.
A senior Lib Dem MP pointed out the United Project set up by former Lib Dem leader Paddy Ashdown which supported ‘like minded” MPs from Labour, the Lib Dems and Tories and had provided support for them in the last election has 35 MPs in the group enough to be the third party.”
A senior Lib Dem MP pointed out Lib Dem leader Vince Cable has held discussions about creating a new party and his reforms to the leadership allowing a non-MP or non-party member to be leader “was part of the process of preparing for a new centre party.”
It is believed the Lib Dem HQ and regional offices could form the physical infrastructure for the party.
Meanwhile, a senior Labour peer has said that most of the party’s members of the Lords would switch to the new party when it is launched.
A Tory MP, who has been approached and is considering switching if the party is launched, said: “Businesses have given up on the Conservatives, they are fed up over Brexit.”
Brexit news: There is speculation David Miliband could return as the new party’s leader
Another Lib Dem MP: “When it happens, it will be bigger than anybody imagined would be possible.”
If the party attracts around 10 Tory MPs to come over it means an election could be forced along with Labour and SNP votes.
Mr Umunna denied being involved with a new party.
He said: “These rumours are being put about by those who want to undermine these cross-party efforts to secure a People’s Vote but we won’t be deterred. The national interest must be put beyond party politics.”
Meanwhile, the timing of a Brexit deal appears to be aimed at allowing the Government being able to publish details while MPs are away on a short break from the Commons, preventing an immediate fightback by Brexiteer MPs.
It also comes as European leaders mark the centenary of the end of the First World War and Theresa May will join French President Emmanuel Macron during the week to commemorate the fallen.
Brexit news: Brexit Raab is believed to be trying to get Cabinet colleagues to sign off a deal
This means the deal would be sold as a way of bringing Europe together at a time when the continent remembers the tragic loss caused by it going to war.
Ahead of Tuesday it is understood that Brexit Secretary Dominic Raab has been trying to get cabinet colleagues to sign off on the deal after reports last week that the Northern Ireland/ Ireland border issue has been resolved along with the EU granting access to the City of London.
One minister said: “Dominic Raab has been trying to square issues with colleagues to be in a position to make an announcement on a deal next week.”
A Cabinet minister confirmed the deal is expected to be cleared at Tuesday’s meeting.
The senior government member said: “I sense a change in the atmosphere. It is noticeable that the preparation for a deal has stepped up a notch and the preparation for no deal has stepped back a notch this week.
“The contrast with last week is quite stark because this time last week the discussions and preparations for no deal had been stepped up and were being taken very seriously.”
“I sense that Cabinet on Tuesday will be very significant.”
Brexit news: Peter Bone said getting Chequers would be a “complete betrayal”
Brexiteers were despondent over what they fear will be a sellout to the EU which fails to deliver the Brexit people voted for.
Senior Brexiteer Peter Bone, the founder of Grassroots Out, said: “If we get Chequers, it is a complete betrayal. Our red lines will be wiped out.
“We will end up with a common rule book which is an EU rule book, we will have to accept judgements from the European Court of Justice, and we will have free movement but under another name.”
He was also dismissive of the plans for a new party.
He said: “It sounds like a party for the elites to force us back into the EU. It’s not a good idea to launch a party which goes against the people’s verdict on the EU.”
Downing Street refused to comment on speculation over a deal being unveiled.
However, a Brexit department spokesman said: “Nothing is expected next week.