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The Latest: Merkel concerns by Gibraltar impasse on Brexit

LONDON — The Latest on negotiations over Britain’s exit from the European Union (all times local):

10:30 a.m.

German Chancellor Angela Merkel says she hopes Spanish reservations about the status of Gibraltar after Britain leaves the European Union can be overcome by the time EU leaders meet Sunday to sign off on the draft Brexit deal.

Speaking to lawmakers in Berlin, Merkel said that while her government backs the agreement “we still have the reservations of Spain and I can’t say how we will solve this issue.”

The deal, which spells out the conditions of Britain’s exit next year, needs to be approved by the European and British Parliaments.

Spanish Prime Minister Pedro Sanchez said Tuesday that his country would vote against the divorce agreement if Gibraltar’s future isn’t considered a bilateral issue between Madrid and London.

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9:45 a.m.

British Prime Minister Theresa May is flying to Brussels to meet European Commission President Jean-Claude Juncker in a bid to finalize a Brexit agreement between the U.K. and the European Union.

The two sides agreed last week on a document sealing the terms of Britain’s departure, but are still working to nail down agreement on future relations.

EU leaders are due to meet Sunday to rubber-stamp the deal, but sticking points remain. Spain has said it will vote against if Gibraltar’s future isn’t considered a bilateral issue between Madrid and London.

May is under intense pressure from pro-Brexit and pro-EU British lawmakers opposing the divorce deal.

Before leaving for Brussels, she will face opponents of the agreement Wednesday during the prime minister’s weekly question-and-answer session in the House of Commons.

The Associated Press