Gibraltar deal to enter Schengen zone 'within kissing distance' as warning issued over Keir Starmer's EU 'reset'

"I think we can now see the finish post. I've said before, we're 99 per cent of the way there. I said, we're within kissing distance," Picardo said.

If there were "1,000 issues" in the negotiations, they are now "down to the last handful of issues to be resolved", he added.

The plan would make Gibraltar an associate member of the EU's passport-free Schengen zone, which encompasses 29 European countries.

This would allow the free flow of people between the Rock and Spain, and quash concerns over passport queues at the border - which 15,000 Spanish workers cross every day.

Gibraltarians would regain the freedom of movement "we used to enjoy as European citizens," Picardo told Times Radio.

The Rock voted overwhelmingly to remain in the EU in 2016, with 95.9 per cent of residents opting to stay tied to Brussels.

And with Brexit back in the headlines just days before a landmark UK-EU summit on May 19, Spain's Foreign Minister Jose Manuel Albares has urged Sir Keir Starmer that his "reset" with the EU must include Gibraltar.

The plan has long been to move the border to Gibraltar's sole airport, which is close to the land crossing.

European border guards from Frontex, an EU agency, would carry out passport controls on all arrivals.

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This arrangement means British citizens travelling to Gibraltar may have to show their passports to Spanish or EU border guards at the airport.

Concerns have already been raised that Frontex border guards could potentially turn British travellers away from Gibraltar - even if Gibraltarian officials had approved their entry.

The talks have repeatedly stalled over sensitive sovereignty issues, including Madrid's wish for Spanish border police to operate security checks at Gibraltar's airport and sea port.

But Gibraltar has consistently maintained a "no Spanish boots on the ground" policy, amid concerns about the integrity of the RAF base at the airport.

Albares has said Spain is committed to reaching a deal but is willing to park, though not fully renounce, its historical sovereignty claim to the Rock.

Since Brexit, the border has been kept open thanks to both sides turning a blind eye to the rules.

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Spain generally allows Gibraltarian residents to enter without passport checks, but has said this cannot continue indefinitely.

In return, Gibraltar allows Spanish workers to enter without passport stamps.

The EU is expected to introduce its delayed electronic Entry Exit System this year, including at the Gibraltarian border.

This would require passport and biometric data checks for all people entering Spain, risking long queues at the vital crossing.

A Foreign Office spokesman said: "This Government inherited a situation from the last government which left Gibraltar's economy and way of life under threat.

"In the negotiations we have continued from the last government to resolve this, we have been clear that we will only agree a deal that maintains British sovereignty over Gibraltar and has the full backing of Gibraltar's Chief Minister, Fabian Picardo."