Dialogue should continue as long as there is the possibility of a post-Brexit trade deal, Ireland’s Taoiseach has said.

Creating a level playing field for commerce and access to fishing waters are the key outstanding matters.

Micheal Martin said 97% of issues have already been agreed between Britain and the EU, as his Government urged everybody to hold their nerve.

He told the BBC’s Andrew Marr Show: “I think it would be an appalling failure of statecraft if we were not in a position to get a deal over the line.”

He added: “It is vital that we do not have an acrimonious break-up because that would be very damaging.”

EU and British negotiators are to continue talking.

In a joint statement, Prime Minister Boris Johnson and European Commission president Ursula von der Leyen said it is “responsible at this point to go the extra mile”.

Afterwards, the Irish Government reiterated that it has always felt a deal can be done.

Foreign Affairs Minister Simon Coveney said it is “time to hold our nerve and allow the negotiators to inch progress forward – even at this late stage”.

“Joint statement on Brexit negotiations is a good signal,” he tweeted.

“A deal clearly very difficult, but possible.”

Europe Minister Thomas Byrne told RTE’s The Week In Politics that talking is always the best solution.

“We felt it needed to get away from a winner and loser scenario,” he said.

“If there is no deal everyone is a loser.

“If there is a deal we all win.

“Any deal is give and take – but give and take benefits everybody.”

The Taoiseach said continued dialogue gives him hope.

The level playing field means common rules that prevent businesses in one country from gaining a competitive advantage over those operating in others.

It is designed to ensure fair competition and is integral to the EU’s Single Market in goods, services and capital.

Britain is concerned about being tied to the bloc’s decisions in future and wants to assert its freedom as a sovereign country to set its own rules.

Ireland has argued that in reality Britain is unlikely to significantly diverge from EU standards in many areas and Mr Martin again noted that the UK is a “first-world country”.

The EU and Britain have also been struggling to resolve the issue of use of fishing grounds.

Mr Martin said it is important to agree frameworks for issues like the level playing field, adding: “With some degree of creativity a resolution can be found in that area.”

He said access to the European market is important to Britain.

“A resolution mechanism to resolve any future disputes is one that both sides, with a bit of creativity, can sign up to,” he said.

“Ninety-seven percent of this deal has been negotiated.

“The remaining 3% should not be beyond the capacity of both sides to bridge.

“That is why it is so important that dialogue continues.”