European Council President Donald Tusk is proposing to offer the UK a flexible Brexit extension of up to one year - with the option of leaving the EU sooner if a divorce deal is passed.
An emergency EU leaders summit to discuss Brexit will be held on April 10, where possible ways forward will be discussed.
Briohny Williams has more from Brussels:

At least 73 injured after Houthi rebels attack Saudi civilian and energy facilities
Nepal rescue focused on workers trapped in three tunnels
Indonesia reopens Jakarta airport, four others after Anak Krakatau ash clears
Russia hits Kyiv after brief pause for US envoys' visit, killing two
Kenya offers temporary amnesty to undocumented East Africans amid crackdown fears
7 Indonesian airports remain shut due to volcanic ash from Anak Krakatau
Bolivia confirms 9 deaths after military base explosion
Israeli strikes on southern Lebanese town kill 11, state news agency saysÂ
