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The shadow Brexit secretary says the progress is "encouraging" but the priority now lies with agreeing transitional arrangements.

Keir Starmer said: "That means staying in the single market and a customs union for a time-limited period.

"We will also need to know the political price of the deal struck and the impact any compromise that has been agreed will have on our future relationship with the EU."

Mr Starmer also called upon Prime Minister Theresa May to "seriously reflect" on her approach to the negotiations.

"We cannot have another year of chaos and confusion or the farcical scenes we saw earlier on in the week that put jobs and the economy at risk."

Jeremy Hunt hails the prime minister's "extraordinary achievement" saying this deal gives guarantees to EU doctors and nurses about their rights of residence. He tells them "we want you to stay."

Mr Barnier says the text agreed by the UK and EU could be the basis of the final withdrawal agreement - which will need to agreed by October 2018.

He repeats Mr Juncker's view that he believes there is sufficient progress to move to the second phase, saying there has been "real progress" on citizens' rights, the Irish border and the financial settlement.

But he adds there will need to be further negotiations on certain issues such as nuclear co-operation and the governance of the final agreement.

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Former UKIP leader Nigel Farage says of the deal, "It's not Brexit, we voted to leave the European Union.

"She (the PM) has given a foreign court jurisdiction over us for many years to come."

He added: "Now at best we will not be leaving until 2021 and the next general election will be fought on this issue".

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Today Programme
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The DUP's Sammy Wilson says he is "not entirely happy" with the agreement and he would like to have seen the phrase "full alignment" taken out of the text agreed by the UK and EU.

But he says it is a huge improvement from what was being proposed on Tuesday, which he said risked seeing Northern Ireland "being cut adrift" from the rest of the UK and being left "half in" the EU.

The agreement, he states, ensures that Northern Ireland will leave the EU "on the same basis" as the rest of the UK.

Speaking in Brussels, the EU's chief negotiator Michel Barnier says there is still work to be done but this is a "turning point" in the Brexit talks.

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Environment Secretary Michael Gove says even when the UK leaves the European Union both parties will be working towards the "same ultimate goal".

He added proposals of a full alignment were there in the event of no free trade agreement being reached.

However, Mr Gove said he was "confident, optimistic and hopeful" the UK could secure a deal on trade.

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Labour MP Chuka Umunna, a prominent supporter of the Open Britain campaign against hard Brexit, told BBC Radio 4's Today programme:

"It is about time. It has been 18 months since the referendum and only now have we agreed to start talks about our future relationship with our largest trading partner.

"It is very welcome but we really need to get on with this. This has entailed the prime minister having to radically repaint her red lines."

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Today Programme
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Other points to take away from Environment Secretary Michael Gove's Today interview:

*He says that the UK's "divorce bill" will end up being quite a bit lower than recent reports have suggested

*He insists MPs will have a meaningful vote on the final terms of exit

*He confirms there will be a role for the European Court of Justice during a two-year transition period but says it will be strictly time-limited

*And lastly, he's a fan of culinary metaphors. Sparring with John Humphrys, he says the Today presenter is trying to dice up the steak to the exact size he wants it to be while he is determined to "take it off the griddle".

Quoting Winston Churchill, Irish prime minister Leo Varadkar warns there is plenty of hard work ahead.

Ireland's Taoiseach Leo Varadkar says his government will remain "fully engaged and vigilant" into the next phase of negotiations.

"I am satisfied that sufficient progress has now been made on Irish issues, the parameters have now been set and they are good.

"This is not the end but it is the end of the beginning."

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Environment Secretary Michael Gove, a leading Leave campaigner, is sounding unsurprisingly upbeat about the deal.

He tells BBC Radio 4's Today that if any eurosceptic was told 18 months ago that the UK would be leaving the single market and customs union and be outside the jurisdiction of the European Court of Justice they would have been "delighted".

If you want to stop companies going ahead with their contingency plans, there must be more clarity on the Brexit transition.

That's according to the CBI.

The business lobby group says companies had begun triggering plans months ago and more detail could help suspend this sort of action.

Also calling for security is the British Chambers of Commerce. Its director-general says: "Businesses want answers on what leaving the EU will mean for regulation, customs, hiring, standards, tariffs and taxes".

Ireland's Taoiseach Leo Varadkar says the deal has "achieved all we set out to achieve".

The EU-UK deal leaves a lot of questions unanswered but it goes some way to securing Theresa May's position.

Steven Woolfe, who now sits as an independent in the European Parliament, has questions about the deal struck.

Shane Harrison
BBC NI Dublin correspondent

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The common travel area has been protected in this deal.

It is an agreement between the UK and Ireland which allows citizens from other countries to live, work, obtain social welfare and vote in each other's general elections.

Clearly the Irish government are pleased with this because, for every euro that went north-south, in terms of trade, a much higher percentage went between the Great Britain and the Republic.

And of course the UK is often used as a land bridge for Irish goods trying to get elsewhere in Europe.

Nothing will be agreed until everything is agreed so we are still in a fluid situation.

But the Europeans are very keen to point out the clock is ticking - they had hoped they would get to this position in October.

Ideally they would have liked the whole phase two sorted out by autumn of next year but I don't think that will happen.

The next area we now look at is the transition phase - how long will that be? There is still a lot of water to flow under the Brexit bridge.

Irish media comparing deal to Ireland's famous victory over England in the 1988 European Championship

The president of the European Council, Donald Tusk, has said more clarity is needed in how Britain sees its future relationship with the EU.