The EU is reportedly preparing to sign off on a Brexit extension to January 31 next year, with an option for the UK to leave earlier if a deal is ratified.

According to a leaked draft of an agreement, seen by The Guardian, the UK's request for a further delay will be granted, but an earlier withdrawal could also take place on the first day of the month after a deal is agreed.

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The draft, which could still change, suggests a no-deal Brexit on October 31 will no longer take place - as demanded by opposition parties ahead of any general election.

A source is reported as saying the new extension agreement would "very probably" be announced officially on Monday morning.

The document states: "The period provided for in article 50 (3) TEU as extended by the European council decision (EU) 2019/584 is hereby further extended until 31 January 2020.

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"In the event that the parties to that agreement complete their respective ratification procedures and notify the depositary of the completion of these procedures in November 2019, in December 2019 or in January 2020, the withdrawal agreement will enter into force respectively on [the first of the month of the relevant month]."

The potential withdrawal date of November 15 is not included in the draft paper, which is also said to have a declaration attached stipulating that the EU will not renegotiate the withdrawal agreement.