Rishi Sunak and Joe Biden are said to have struck a trade deal pact, in order to sign the deal before the 2024 elections.
Both leaders are facing re-election next year and are said to be preparing for a "foundational" trade deal.
A draft plan prepared by the United States Trade Representative's (USTR) office in late August indicates that trade negotiations will start this month.
Initial chapters of the foundational deal are expected to be completed by next spring.
Both leaders are facing re-election next year and are said to be preparing for a "foundational" trade deal
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But the deal is not expected to include market access commitments required for a formal free trade agreement in the eyes of the World Trade Organization.
A person familiar with the discussions told Politico: "We’re discussing and considering a range of things, but all is very much in early stages and nothing has been finalized yet."
The pact is said to have set out the "target timing for completing negotiations" for the initial deal chapters.
A spokesperson for the Department of Business and Trade said: "The U.K. and U.S. are rapidly expanding the work we do together across the full spectrum of our economic, technological, commercial and trade relations through the Atlantic Declaration."
They added: "Discussions with the U.S. on next steps under this first-of-its-kind agreement are ongoing."
The initiative is said to have been dubbed the US-UK Trade Partnership.
It will "seek to negotiate a new, foundational trade agreement to create a permanent mechanism to coordinate and cooperate on trade policy issues of mutual interest and to further deepen existing trade ties" between Britain and the U.S.
But UK Business Secretary Kemi Badenoch said there is "zero" chance of the UK securing a post-Brexit trade deal with the US while Joe Biden remains in the White House.
She said he is too close to the unions to strike a free trade agreement.
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Kemi Badenoch said there is "zero" chance of the UK securing a post-Brexit trade deal with the US while Joe Biden remains in the White House
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Asked at a fringe event about the possibility of a UK-US trade deal, Badenoch said: "Under this administration – zero."
When asked if a Trump administration would make a trade deal more likely, she said: "An FTA is a tool. It is not the answer to everything.
"There are other things you can do. You don’t always have to wait for the FTA with the president or his administration."
