EU nationals arriving in the UK during the transition period following Brexit will be eligible for indefinite leave to remain, government sources have suggested.
Sources have told the BBC that a compromise offer will be made to the EU after Guy Verhofstadt, the EU parliament's Brexit lead, said citizens' rights during the transition period are "not negotiable".
But the UK government has said new arrivals during the transition period should not expect to have the same rights as those arriving before the Brexit date.
The EU has said it expects the transition period to last until 21 December 2020, while Theresa May has said it should last for about two years from March 2019.
In December the government said that EU nationals who have been in the UK for more than five years can expect to be granted settled status. Those who have been in the UK for less than five years, but arrive before a cut-off date, will be allowed to stay and apply for settled status when they reach five years of residency.
Kate Nicholls, chief executive of UKHospitality, has previously said clarity is urgently needed for the hospitality industry: "The Home Affairs Committee's advice to the government recommends a future immigration policy that takes into account the needs of the UK, and UK businesses, and promotes an evidence-based framework.
"We agree with the findings of the committee: hospitality businesses will need to augment their UK workforces with oversees workers if they want to continue growing. A transparent, evidence-based system that acknowledges the needs of hospitality businesses is a sensible and desirable outcome for employers in need of clarity."
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