The government said it would “act in the national interest to secure the best outcomes for the UK” in discussions with the EU, but added that “no final agreement has been made”, and that it wouldn’t give “a running commentary”.

The CBI is asking both sides to make it easier for staff to work across borders, restore recognition of professional qualifications, and reintroduce youth mobility schemes so young people can live and work in both regions.

The government’s aims include a defence deal and a wider negotiation of the trading relationship between the UK and the bloc.

A security pact could pave the way for greater UK involvement in EU-wide defence procurement projects, as well as access to a loans scheme for British defence firms.

One of the EU’s key demands is for a youth mobility scheme, which would make it easier for young people to study and work in the UK and vice versa, for a time-limited period.

The UK previously said it had “no plans” for such a scheme, but its opposition to the idea has softened in recent weeks.

Earlier this month, European relations minister Nick Thomas-Symonds told the Financial Times, external the UK would consider “sensible EU proposals in this space”.

The CBI says youth mobility schemes would open up a larger talent pool to businesses in the UK, as well as providing UK citizens with the opportunity of a wider market of employers.