More progress is needed from the UK Government on key issues before a deal which could unlock the Stormont powersharing deadlock is achieved, Sir Jeffrey Donaldson has said.

The DUP leader said he hoped for an update in the coming days over what progress has been made on the trade border impasse.

Sir Jeffrey said he wanted a deal which would restore Northern Ireland’s place in the UK internal market while also maintaining “privileged” access to the EU single market.

The Stormont institutions have been suspended for almost two years because of a DUP boycott in protest at post-Brexit trading arrangements.

The DUP has insisted it will not end its blockade until it secures legislative assurances from the Government on Northern Ireland’s trading position within the UK.

Northern Ireland Secretary Chris Heaton-Harris has insisted that talks with the DUP over its concerns have now concluded.

However, DUP leader Sir Jeffrey Donaldson has claimed the engagement is continuing, making clear he is not yet in a position to back the legislative proposals the Government has offered the party.

Talks between Mr Heaton-Harris and the main Stormont parties over a £3.3 billion financial package to accompany the return of devolution broke up at Hillsborough Castle in December without any agreement to restore the Assembly and Executive.

The package would include money to make an outstanding pay award to public sector workers.

With their pay demands still unmet, unions are planning a major strike across Northern Ireland on January 18.

If the Government wants to reach agreement they know there has to be progress made on a number of key areas for us

Sir Jeffrey told the BBC: “We will be talking to the Government about the outstanding issues which need to be resolved if an agreement is to be finalised, and those relate to our ability to trade with the rest of the United Kingdom.

“We are very clear – our priority is to restore Northern Ireland’s ability to trade with the rest of the United Kingdom, to restore our place in the UK internal market, to remove unnecessary barriers, to trade between Great Britain and Northern Ireland and, at the same time, we aspire to maintain privileged access to the EU single market.”

The DUP leader added: “If the Government wants to reach agreement they know there has to be progress made on a number of key areas for us, and we will continue to work at this until we get that agreement.

“As far as we are concerned the talking is not done, there are issues that need to be resolved, and we will keep pressing the Government on those issues.

“I will be talking to the UK Government this week and the idea that they are not willing to talk is simply not true.”

Sir Jeffrey said the negotiations with the Government are “real and genuine”.

He added: “We hope to hear from them later this week on what progress has been made.

“You can’t be both in the EU single market and the UK internal market; what you can be is in the UK internal market and have privileged access to the EU single market.

“We can continue to trade with the EU on a privileged basis, as we do at the moment for goods, but we can have our ability to trade with the rest of the United Kingdom properly restored.”