While talks with Brussels have intensified since May emerged from her infighting Conservative party conference last week, there has been no breakthrough.
EU chief negotiator Michel Barnier said Wednesday (10 October) that the withdrawal agreement between the EU and United Kingdom is "within reach" if London agrees to keep either Northern Ireland or the entire United Kingdom in the bloc's customs union before a separate deal on future relations is reached.
He also stressed the EU's insistence that Britain must accept possible checks on goods moving between its mainland and its province of Northern Ireland, saying Brexit will trigger the need for customs, value-added tax and compliance checks with European Union standards.
Not such a pleasant morning for the Prime Minister who is trying to please the DUP, the European Research Group - the ultra pro-Brexit wing of her own party - and the EU.
He added: "When we entered into the confidence and supply arrangement with the Government, we did so to enable it to deliver on the fiscal elements of its domestic programme and the referendum result to leave the EU".
Earlier this week EU officials expected that a possible new United Kingdom proposal on the Irish border issue would suggest having the United Kingdom remain in the customs union indefinitely. It would have implications not just for Brexit legislation - 50% of which would not have passed without DUP support - but also for the Budget, welfare reform and other domestic legislation. It must be one of the worrying questions for Downing Street.
In addition, Northern Ireland would remain under large parts of single market regulations, requiring enhanced checks on products arriving from Britain, particularly agricultural goods.
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The DUP has threatened to vote against the government's budget if it goes ahead with the plan.
Theresa May must abandon her plans for free trade deals with the rest of the world in order to get a Brexit deal, the EU's chief negotiator Michel Barnier said yesterday.
The agreement will also see Northern Ireland remain within the single market in a bid to avoid a hard border on the island of Ireland, should both sides fail to secure a trade deal after the transition period.
A meeting between the UK Government and devolved administration was meanwhile witness to "heated exchanges" over Brexit and migration policy.
Among those due to attend today's War Cabinet are: the Prime Minister's effective deputy David Lidington; Jeremy Hunt, the Foreign Secretary; Sajid Javid, the Home Secretary; Liam Fox, the International Trade Secretary; Greg Clark, the Business Secretary; Michael Gove, the Environment Secretary, and Gavin Williamson, the Defence Secretary.
Mrs May earlier used her first appearance in the Commons since September's Salzburg summit to urge MPs to act in the national interest and back a Brexit deal amid warnings that "decisive" progress is needed before a crunch European Council summit in Brussels next week.