Britain and the EU have made an agreement on fishing rights in UK waters, allowing a £130billion defence and security deal to go ahead, Brussels' foreign affairs chief said last night.

Kaja Kallas said 'we are over the fish' ahead of a major summit in London next week where Sir Keir Starmer hopes to confirm UK firms will join a 150 billion euro joint defence fund.

Sir Keir Starmer will host EU chiefs at a major summit on May 19 as he pushes for progress in his effort to 'reset ' relations with Brussels after the turmoil of the years since the Brexit vote in 2016.

Ms Kallas, the former prime minister of Estonia has made little secret of her bewilderment at the Macron government using the rights of French trawlers to operate off Britain as leverage at a time when Europe faces a major threat from Russia and weakening US resolve under Trump.

But speaking to the BBC's Newsnight she said both sides were 'working intensively' towards a deal, adding: 'In this security environment, in this global security environment that we are in I think the co-operation between the UK and the European Union is extremely important for both sides.'