May said her cabinet had also agreed a new business-friendly customs model with freedom to strike new trade deals around the world.
"Next week we will be publishing a white paper which will set out more details of how we will be taking back control of our money, laws and borders," she said.
Included is a proposal to create a post-Brexit UK-EU free trade area which establishes a common rule book for industrial goods and agricultural products.
It would also mean no hard border between Northern Ireland and the Irish Republic, and it would end free movement of Europeans, allowing Britain to control its own borders.
The battle for May is far from over, and everything now hinges on the reaction of her own MPs who support a harder Brexit, and also the reaction to the proposals in Brussels.
And possibility of Britain quitting the EU without a future trade deal is far from over, according to leading political commentators Friday night.
The Guardian newspaper reported that the agreement reached at Chequers among cabinet ministers represented a rapid turnaround in a 24-hour period, after the prime minister had been forced on to the defensive.
Britain would, according to the proposals, accept continuing harmonisation with EU rules on the trade in goods, covering just those necessary to ensure frictionless trade. But the British Parliament would have the final say over how the rules are incorporated into UK law.
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