Talks on the Northern Ireland Protocol are "inching towards a conclusion" but there is a still a gap to be closed, the Taoiseach has said.
Speaking in Galway, Leo Varadkar said there is a possibility of agreement being reached in the next few days, but cautioned it is by no means guaranteed.
Talks between the UK and the European Union are intensifying this weekend as both sides try to reach agreement on post-Brexit trading arrangements for Northern Ireland.
"Certainly the deal isn't done yet," the Taoiseach said.
"But I do think we are inching towards conclusion and I really want to thank the UK government and the European Commission and the Northern Ireland parties for the level of engagement that they've done in recent months to get us to this point.
"I would just encourage everyone to go the extra mile to come to an agreement because the benefits are huge. They allow us to have the Northern Ireland Assembly back up and running in the north and the Good Friday Agreement working properly again, and also to put relations between the United Kingdom and Ireland and the European Union on a much more positive footing.
"That's really important given all the other challenges we face, particularly with inflation and the war in Ukraine," Mr Varadkar said.
The Taoiseach added that he did not want to say anything that might risk the process but there is a possibility of agreement in the next few days.
The BBC is reporting that a planned visit to the UK by European Commission President Ursula von der Leyen - which had been due to include a meeting with King Charles - has been cancelled for operational reasons, unconnected to the political talks.
The PA news agency reports that British Prime Minister Rishi Sunak will keep working towards securing a post-Brexit deal after plans for an in-person meeting with Ms von der Leyen were called off.
After having "positive" discussions with Mr Sunak yesterday, Ms von der Leyen was expected to arrive for further talks on the Northern Ireland Protocol.
British government sources confirmed Ms von der Leyen was no longer scheduled to make the journey to the UK.
Some reports suggested Downing Street had hoped she would shake hands on a revised pact while visiting, while Sky News reported that she was also scheduled to meet King Charles at Windsor Castle.
The report said the meeting could have been interpreted as King Charles "endorsing the deal" that Mr Sunak is attempting to negotiate with the EU in order to solve Brexit-related issues.
UK government sources said that, while Ms von der Leyen's trip was no longer going ahead, it would not have been improper for King Charles as head of state, to have met a visiting European leader.
"It would be wrong to suggest the King would be involved in anything remotely political," a source said.
Buckingham Palace said it would not comment.
Downing Street said further talks between Mr Sunak and Ms von der Leyen would occur within the coming days, without giving exact timings.
The pair have spoken three times in the past week, including holding face-to-face conversations on the fringes of the Munich security conference last weekend.
Unusually, Downing Street declined to set out Mr Sunak's plans for the weekend.
With ministers reportedly on alert for a possible conference call over the weekend and Tory MPs being ordered into Parliament on a three-line whip on Monday, Westminster has been braced for a No 10 protocol announcement.
The protocol, signed by former prime minister Boris Johnson in 2020, was designed to prevent a hard border in Ireland after Brexit by effectively keeping Northern Ireland in the EU's single market.
But the treaty has incensed unionists due to the trade barriers it has created between Northern Ireland and the UK.
Read more:
At a glance: The Northern Ireland Protocol
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Mr Sunak had reportedly been keen to announce a deal this week but Downing Street said yesterday that "intensive negotiations" with Brussels were still underway.
According to The Times, the current offer on the table would mean an overhauled protocol that would remove almost all checks and most paperwork on goods crossing the Irish Sea.
Any announcement of a deal is expected to set up a possible clash with Conservative Brexit hardliners.
Mr Sunak has promised the House of Commons will be able to "express its view" on his fresh protocol terms, which he hopes will get the Democratic Unionist Party to restore power-sharing in Northern Ireland.
The DUP has issued seven tests to win its backing for any deal, including addressing what it calls the "democratic deficit" of Northern Ireland being subject to EU rules while not having a say on them.
The Daily Telegraph, which reported that a breakthrough could come over the weekend, said it was understood the DUP is set to be granted a place at the negotiating table when new EU laws that are applicable in Northern Ireland are being written.
Foreign Secretary James Cleverly indicated that ministers will not sign off a deal over the protocol until the DUP's concerns are addressed.
Additional reporting PA
