BREXIT talks are back on today after Boris Johnson and Brussels agreed to keep talking until Sunday.
After a three-hour fish supper with the EU boss Ursula von der Leyen, Mr Johnson flew back to London last night with both leaders cautiously backing a fresh round of haggling.
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Negotiators had insisted that they could go no further without concessions from the leaders, sparking speculation one side has now blinked.
No10 said the dinner was "frank" while the EU said it was "lively and interesting."
But both sides ordered their teams back round the table after unlocking the standoff over a symbolic three-course meal of scallops and turbot.
Fishing access is one of the major sticking points to a new trade deal that must be inked and approved by MPs by New Year in order to avoid No Deal chaos.
The pair will decide on Sunday whether to carry on talking more or officially call time on the testy talks that were deadlocked over demands that Mr Johnson had said no PM could agree.
Last night a Number 10 source said: "Very large gaps remain between the two sides and it is still unclear whether these can be bridged. The PM does not want to leave any route to a possible deal untested."
They added "by Sunday a firm decision should be taken about the future of the talks."
But EU sources sounded more optimistic, with one official close to the talks insisting that while "the gaps between the sides are real both believe a deal can be done."
Ms von de Leyen said: "We gained a clear understanding of each others´ positions. They remain far apart.
"We agreed that the teams should immediately reconvene to try to resolve these essential issues. We will come to a decision by the end of the weekend."
Yet another date
By Harry Cole, Political Editor
WHEN is a deadline not a deadline? When it is Brexit talks.
With another "make or break" cut off point kippered, Boris Johnson and his EU counterpart Ursula von de Leyen last night set yet another date of this Sunday to clinch a trade deal.
Brussels said "the end of the weekend" was the finale, but the Brits said a decision about more talking will be taken then - so expect that deadline to slip too.
But given both sides had said last night's dinner was needed because the negotiators had run out of road without someone changing their position, there is only one question Brexit-watcher's lips this morning...
Who blinked first?
The leaders and their chief negotiators finally met face to face after a series of frantic phone calls had failed to unlock the warring officials - with talks proceeding beyond 11pm.
A trade deal has to be inked and passed by Westminster and Brussels Parliaments by 31 December to avoid tariffs slapped on goods.
The mood was boosted after Britain said it was prepared to offer EU boats "very generous" access to UK waters from next year and Mr Johnson dropped his threat to break international law by ripping up last year's divorce terms in a row over the Northern Irish border.
Ahead of his dash to the Belgian capital, Mr Johnson had told MPs he would not be backing down over the dinner and accused the EU of making outrageous demands to bind in the UK forever.
He told the Commons that talks were still stalled on EU access to British waters and their demands for a "level playing field" on red tape and state subsidies.
Negotiators have also so far failed to agree how disputes over the new trade deal would be mediated after the UK refused to bow down to EU judges.
But the PM said Brussel’s solutions were never going to fly.
He told MPs: "Our friends in the EU are currently insisting that if they pass a new law in the future with which we in this country do not comply or don't follow suit, then they want the automatic right to punish us and to retaliate.
"Secondly, they are saying that the UK should be the only country in the world not to have sovereign control over its fishing waters.
"I don't believe that those are terms that any prime minister of this country should accept."
'HOPING FOR MIRACLES'
Mr Johnson’s rallying cry came after Michael Gove suggested that the PM would have to climbdown to get a deal.
The powerful Cabinet Office boss was said to have “irritated” Downing Street by publicly declaring both Mr Johnson and the EU will have "to move" if talks are to restart.
The powerful minister raised alarm bells amongst Brexiteers by saying "both sides" would have to climb down to avoid a no deal.
Ahead of last night’s dinner Eurocrats said they were "hoping for miracles" and that German Ms von der Leyen can "use all the charm available to her to woo" Mr Johnson into "changing some of his positions".
But early signs of that charm were in short supply when the stern German former Defence Minister chided Mr Johnson for appearing to break Covid rules by standing too close to her.
Posing for photographs on his arrival at the EU HQ, Ms von der Leyen warned through an EU flag mask: “keep distance".
Mr Johnson, who was wearing a No10 branded face covering, replied: "You run a tight ship here, Ursula, and quite right too.”
After a brief exchange for the cameras, Ms von der Leyen said "Allons-y", the French term for "let's go" as they headed off for dinner.
"Allons-y," the PM replied.
In a sign of hardening attitudes across the Continent, the EU announced new No Deal plans just as the PM arrived in a freezing and blustery Brussels.
Hopes for a breakthrough from the meeting were low on Wednesday , with European negotiators saying an agreement to carry on talks would represent a success.
A French official warned: "Things haven’t really progressed since the weekend. The likelihood of No Deal is growing."
Before the meal one senior EU diplomat said they were hoping the PM would "bring some energised movement in the UK position".
A second top diplomat insisted it was "up to the UK now to make a move" and every day that passes "the more the scales tip" towards No Deal.
Ireland's PM Micheal Martin warned ahead of the meeting that the talks are on the precipice of a No Deal".
His deputy, Leo Varadkar, put the chances of a success at 50/50 but said he believes Mr Johnson will compromise to get an agreement.
What are the sticking points in Brexit talks?
LEVEL PLAYING FIELD: Brussels wants a shared set of rules and standards to ensure businesses in the UK do not have an unfair advantage over their competitors. The UK has said it won't lower its standards, but wants to be able to set its own rules.
GOVERNANCE: Who decides what happens if the terms of the deal are breached? The EU wants a European body to decide the terms, but the UK aren't keen on this and want an independent arbitrator to have the final say.
FISHING: The EU wants continued access to Britain's fishing waters after we leave. It's claimed Britain would be happy with a three year deal to phase out access, but the EU are pushing for ten. One of the key referendum claims was that Britain would be able to take back control of our borders - including fish - when we leave the EU.
And Angela Merkel hit out "If there are conditions coming from the British side we cannot accept, we'll go our own way without an exit agreement."
READ MORE SUN STORIES
But hitting back from the tarmac of Brussels airport last night, Mr Johnson tweeted: "A good deal is still there to be done.
"But whether we agree to trading arrangements resembling those of Australia or Canada, the United Kingdom will prosper mightily as an independent nation."