Angela Merkel has bolstered confidence the UK and EU can come to a Brexit agreement.
The German Chancellor spoke after Theresa May made a plea to EU leaders to clear the way to a deal she could present to the British electorate.
Under pressure from those who favour a ‘hard Brexit’ in the Conservative Party, the Prime Minister told the EU 27 member-states there was a “clear and urgent imperative” to end the negotiation stalemate to achieve a deal acceptable to the British and their own voters.
She made it clear she needs their help, and in the wake of the dinner, Merkel dismissed suggestions of the talks collapsing, saying progress was being made step by step.
The German Chancellor said there was no reason to believe a deal would not be achieved.
Representatives from the 27 are to declare at the European Council not enough progress has been made to progress the negotiations further.
Several leaders are to make clear they want more “clarity” in what Britain would be willing to pay in its financial settlement.
However, they are expected to make a concession in beginning to start scoping out a stance on trade internally.