Brexit negotiations resumed in Brussels with signs that one of the biggest obstacles to a deal is being resolved.

With the U.K. and European Union striving to finalize a deal before Monday evening, a political compromise on the longstanding stumbling bloc of fisheries is starting to emerge, two people with knowledge of the discussion on both sides said.

That leaves the issue of the so-called level playing field for fair competition as the main outstanding hurdle. 

The EU wants to bind the U.K. to some rules on subsidies and labor and environmental standards so that businesses don't have an unfair advantage.

Prime Minister Boris Johnson and European Commission President Ursula von der Leyen will hold a telephone call on Monday evening, by which time the two sides want to be in a position to say there's a deal or take the decision that it's beyond reach.

However, the EU diplomat said expectations were low for an agreement within 24 hours.

(With input from agencies)