European Union and British negotiators have failed to get a breakthrough in the Brexit talks during a frantic all-night session and will continue seeking a compromise on the eve of Thursday's crucial EU summit.

An EU official, who asked not to be identified because the negotiations were still ongoing, said: "Discussions continued until late in the night and will continue today."

Both sides were hoping that after more than three years of false starts and sudden reversals, a clean divorce deal for Britain leaving the bloc might be sketched out within the coming hours.

Thursday's EU leaders' summit comes just two weeks before the United Kingdom's scheduled departure date of October 31.