The European Union is set to announce proposals to ensure medicines can continue to flow unimpeded from Great Britain into Northern Ireland.

European Commission vice-president Maros Sefcovic is expected to announce proposed new legislation on Friday.

The UK’s Brexit Minister, Lord Frost, is understood to be aware of the development and is also expected to make a statement.

The issues surrounding medicines stem from the outworkings of the Northern Ireland Protocol, a part of the Brexit deal which means Northern Ireland remains covered by the EU’s pharmaceutical regulations.

We believe the proposals solve all the issues that were raised about medicines

As Northern Ireland receives most of its medicines from suppliers in Great Britain, there had been concerns that their movement could be impeded when a grace period expires.

That grace period was originally due to end in January but in the autumn the UK extended it unilaterally – along with other temporary exemptions associated with the protocol – pending efforts to find negotiated solutions to the issues.

The anticipated unilateral EU move will include a proposal to pass legislation that will enable the trade of medicines between Great Britain and Northern Ireland to continue.

A Brussels source said: “We believe the proposals solve all the issues that were raised about medicines.”

Any new legislation would be subject to ratification by both the European Council and the European Parliament.

Mr Sefcovic and Lord Frost are expected to speak by phone ahead of the announcement.

It is understood Lord Frost has asked to meet with Northern Ireland’s political parties on Friday, with party leaders anticipating a briefing on the development.

It is not expected that there will be a resolution to any other subjects, but there may be an indication from both sides on an approach to dealing with outstanding issues such as customs and food and plant and animal checks in the new year.

Talks are set to resume in January when efforts will intensify to resolve the areas of dispute.

There have been signals that London and Brussels may be moving towards a potential landing zone for a compromise over one of the thorniest issues – the oversight role of the European Court of Justice.

The UK Government had previously insisted the total removal of the ECJ’s role was a red line, while the EU made clear Northern Ireland could not retain unfettered access to the single market without the ECJ overseeing matters of EU law.

A potential compromise deal could see a more limited role for the ECJ – confined to only EU law matters – with an independent mechanism dealing with wider arbitration issues.

The proposed EU law change on medicines would allow GB-based pharma suppliers to maintain their current regulatory arrangements.

It would mean companies in GB could continue to act as a hub for the supply of generic medicines to Northern Ireland, without the need to establish bases in the region.

The proposals would also apply to other small markets which use British medicines, including the Irish Republic, Malta and Cyprus.