Theresa May is staging a humiliating retreat over her Brexit deal in the face of a massive Tory revolt.
The PM is delaying a showdown Commons vote tomorrow to avoid a catastrophic defeat.
Mrs May has been locked in intense talks with the Cabinet and aides as they try to find a way through the dire situation.
Some 110 Tory MPs are pledged to oppose the plan, making victory all-but impossible as they line up with Labour, the SNP, and the Lib Dems.
A series of Cabinet ministers and a spokeswoman for the PM all publicly insisted this morning that the vote was ‘going ahead as planned’.
But within an hour three senior sources told MailOnline they are certain that the Commons showdown will be put off. The Pound slid sharply on the news.
The decision – expected to be formally confirmed shortly – drew derision from critics, including Tories.
Scottish First Minister Nicola Sturgeon accused the PM of ‘pathetic cowardice’, while Conservative MP Nick Boles jibed: ‘Nothing has changed, right?’
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The new timings are unclear, but under the EU Withdrawal Act the government must lay out its plans to Parliament by January 21 at the latest.
Mrs May is making what could be an agonising statement to MPs later this afternoon.
There are also some doubts about whether Mrs May will be able to shelve the vote, with Tory Brexiteers vowing to try and force a division anyway.
A climb-down will allow Mrs May to avoid catastrophic defeat, and go back to Brussels to try to get more concessions.
But it would also demonstrate how low her authority has sunk.
The EU has also flatly dismissed the idea that there could be substantive concessions on the divorce package, with Irish deputy PM Simon Coveney insisting the deal ‘will not change’.
An EU commission spokeswoman said: ‘This deal is the best and only deal possible. We will not renegotiate – our position has therefore not changed and as far as we are concerned the United Kingdom is leaving the European Union on the 29th March 2019.’
The dramatic developments came as Tory infighting escalated dramatically, with leadership rivals including Boris Johnson and Sajid Javid getting ready to pounce.
Foreign minister Alan Duncan warned that those who kill off Mrs May deal ‘will forever be known as the wreckers’.
He also said if Mr Johnson took over at No10 he will be met with ‘loud raspberries in many different languages’. ‘He is the last person on earth who would make any progress on these talks,’ he said.
A growing number of ministers had been urging Mrs May to shelve the clash tomorrow to avoid disaster.
But others insist that it looks like cowardice, and she needs a demonstration of Parliament’s view to strengthen her hand with Brussels.
Senior figures have spent the weekend trying to quell mounting speculation about a retreat by the PM.
Hours before the volte-face this lunchtime, Environment Secretary Michael Gove said the showdown was ‘100 per cent’ on.
He gave a clear indication that the government is seeking concessions from the EU, saying there was ‘no-one better placed’ than Mrs May to get more concessions.
But he warned there were significant ‘risks’ in reopening the Withdrawal Agreement thrashed out with Brussels, including France seeking more access to fishing waters and Spain troublemaking over Gibraltar.
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Mr Gove dismissed suggestions that Mrs May could be helped in her efforts by a heavy defeat in Parliament.
In a reference to the famous resignation speech by Geoffrey Howe that sunk Margaret Thatcher, he warned that would be the ‘equivalent of breaking the cricket bat in half before the leader went to the crease’.
‘If colleagues really want to help the PM I’m sure the PM would urge them gently but firmly to support her tomorrow,’ Mr Gove told BBC Radio 4’s Today programme.
The leader of the House Andrea Leadsom is due to make a statement to MPs after Mrs May addresses them this afternoon – which could give an indication of how long the vote has been put off.