SPAIN and the UK have finally reached a ‘historic’ Brexit deal over Gibraltar ahead of the EU summit tomorrow.

Spanish Prime Minister Pedro Sanchez announced this afternoon that he will vote ‘in favour of Brexit’, confirming that any future decisions regarding Gibraltar will be made with Spain.

“We have reached a historic agreement and tomorrow we will vote in favour of Brexit. Europe and the UK have accepted our demands,” Sanchez tweeted this afternoon.

A draft document published ahead of the summit reads: “After the United Kingdom leaves the Union, Gibraltar will not be included in the territorial scope of the agreements to be concluded between the Union and the United Kingdom.

“However, this does not preclude the possibility to have separate agreements between the Union and the United Kingdom in respect of Gibraltar… those separate agreements will require a prior agreement of the Kingdom of Spain.”

It comes after Sanchez threatened to veto Brexit on Friday, accusing the UK of making 11th hour changes to the draft withdrawal bill meaning Spain would not be included in decisions over Gibraltar following Brexit.

Meanwhile, European Union summit chairman Donald Tusk, is rallying other EU member states to approve the Brexit deal negotiated with the UK tomorrow, saying he believes they have ‘finally found the best possible compromise’.

He said: “I will recommend that we approve on Sunday the outcome of the Brexit negotiations.

“No one has reasons to be happy. But at least at this critical time, the EU27 has passed the test of unity and solidarity.”