BRUSSELS: European Union president Donald Tusk will unveil proposals on Tuesday for a "new settlement" with Britain that could prevent it becoming the first country to crash out of the bloc.
Both sides have trumpeted "progress" following talks between Tusk and British Prime Minister David Cameron at the weekend, but the EU president warned there were still "outstanding issues" to resolve.
A deal is far from done, with Cameron first having to persuade his fellow 27 EU leaders to back the reform proposals at a leaders' summit in Brussels on February 18-19.
If he gets an agreement, he will then campaign for Britain to remain in the EU in an in-out referendum that is likely to be held in June.
London's bid to transform its EU membership has sparked turmoil, coming as the alliance struggles with the biggest influx of migrants since World War II and the fallout from the eurozone debt crisis.
Former Polish prime minister Tusk is due to send the plans to EU leaders on Tuesday morning before releasing them publicly at 1100 GMT, EU officials said.
"Tomorrow around noon I will table proposal for a new settlement for #UKinEU. Good progress last 24 hours but still outstanding issues," Tusk wrote on Twitter on Monday night.
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