Taoiseach Leo Varadkar has said the meeting between the European Commission President and the British Prime Minister on the Northern Ireland Protocol is a positive and encouraging development.
Ursula von der Leyen is to travel to the UK today to meet Rishi Sunak as both sides work towards a deal on the protocol.
In a joint statement, Ms von der Leyen and Mr Sunak said they have "agreed to continue their work in person towards shared, practical solutions for the range of complex challenges around the protocol".
Leo Varadkar said he was in touch with Ms von der Leyen and he said he also spoke with Rishi Sunak earlier, ahead of their talks in London.
I was in contact with President @vonderleyen today and very much welcome news of a meeting in London between @vonderleyen and @RishiSunak tomorrow. We should acknowledge the level of engagement between the UK Gov, the European Commission and the NI parties in recent months
— Leo Varadkar (@LeoVaradkar) February 26, 2023
"I think it is a positive development. I think it is an encouraging development," he said
Speaking to RTÉ News last night, Mr Varadkar said: "It's not the case that a deal is made at this stage, there’s still some more talking to do but is a very good sign".
"If we can get an agreement on the protocol, it's a very positive development for Ireland and Northern Ireland economically, but most importantly perhaps helps to get the Good Friday Agreement institutions - the assembly and the executive - up and running," he said.
Mr Varadkar also said a deal would put "EU - UK relations and British Irish relations on a much more solid footing allowing us to do a lot of work together".
He described it as "inching forward to an agreement" and he said "there's definitely still a bit of work to be done, but it's encouraging that the meeting is happening in London tomorrow".
Asked if he believes the deal could satisfy the concerns of the DUP, he said: "I think it's best that I don't speak on behalf of anyone else or speculate about how different parties in Northern Ireland might respond to this."
"It'll be up to them to speak for themselves in due course," he said.
"Ultimately, what we're hoping will happen in the next couple of days is an agreement on the reform of the protocol between the European Union and United Kingdom Government.
"That'd be a very positive development and I think would allow us to move forward, and move forward together, which is what has eluded us for many years now," Mr Varadkar added.
The meeting between Ms von der Leyen and Mr Sunak will take place in Berkshire, west of London, the European Commission told media, adding that Downing Street was in charge of arrangements.
SDLP Leader Colum Eastwood has also welcomed progress in talks, saying any resolution must secure the benefits of dual market access for businesses in Northern Ireland.
Earlier, Tánaiste Michéal Martin said "very significant progress" has been made in negotiations to agree a deal, adding that the will is there to get a deal over the line "in a quicker timeline than a medium-term timeline".
Speaking on RTÉ's This Week, he refused to be drawn on whether the announcement of an agreement is imminent.
"The negotiating team should be given space, not just to agree a deal, but to land a deal," he said.
He said the negotiators from the UK and the EU developed a strong trust which was not there before, and the deal on the table would improve upon the original protocol.
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"Our objective collectively is to have a deal and to have the assembly restored in Northern Ireland".
Asked if the deal on the table would satisfy the concerns of the DUP and get them to a point where they would reestablish power-sharing in Northern Ireland he said: "I would hope so."
"We have listened very carefully to the concerns of all parties in Northern Ireland. The broader picture is we have to be conscious of all perspectives. They should focus on the issues which have been raised.
"If we keep to the issues, it will be satisfactory to all concerned…and we will be in a position to get the executive and the assembly up and running," he added.
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At a glance: The Northern Ireland Protocol
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On Sunday morning British Deputy Prime Minister Dominic Raab suggested a deal on the protocol could be delivered within "days, not weeks".
"We've clearly made some progress in recent weeks and days, and it is really important to get this fixed," Mr Raab told Sky News.
He also suggested that Mr Sunak has negotiated a mechanism to deal with what unionists call the "democratic deficit" in the protocol.
Mr Raab said the UK was looking for a more light-touch approach from the European Union when it comes to checks on goods trading between Northern Ireland and Britain as part of the protocol overhaul.
Meanwhile, speaking to the BBC, Mr Raab said: "If there are any new rules that would apply in relation to Northern Ireland, it must be right that there is a Northern Irish democratic check on that.
"Again, that would mark a significant shift in the paradigm of the arrangements."
He added: "If we can get this over the line - we're on the cusp, we've made great progress, we're not there yet - this would be a really important deal.
"Critically, a deal that, with all the best will in the world and with all the progress that others have made, that no prime minister before had been able to secure.
"So, yes, I think it would mark a paradigm shift first and foremost for the communities of Northern Ireland, but I think it would be a significant achievement (for Rishi Sunak)".
It comes after Mr Sunak said his administration is "giving it everything we've got" to finalise an agreement to fix issues with the protocol, but insists a deal has not yet been secured.
Mr Sunak said he is hopeful of a "positive outcome" in the talks with the EU.
He is keen to ensure the Democratic Unionist Party (DUP) is on side with his final agreement as he looks to restore power-sharing at Stormont.
The DUP is refusing to take part in the devolved government alongside Sinn Féin in protest at the impact the protocol is having on trade between Northern Ireland and Britain.
The party has issued seven tests that Mr Sunak's deal will have to meet in order to win its backing, including addressing what it calls the "democratic deficit" of Northern Ireland being subject to EU rules while not having a say on them.
Mr Sunak, speaking to The Sunday Times newspaper, pledged that "anything that we do will tick all of those boxes" in terms of unionist concerns.
A protocol deal has looked close to being announced for almost a week.
Taoiseach Leo Varadkar said yesterday that talks between the UK and the EU were "inching towards conclusion" as he called on all sides to "go the extra mile" to sign off on negotiations.
Additional reporting Fergal O'Brien, Justin McCarthy, PA.