A leading figure in the Conservative Party and a strong supporter of the Remain campaign, former Secretary of Business and Justice Ken Clarke, has urged members of his party to ignore the PM's ultimatum in statements to the British media and supported what he considers her moves to remain in the Customs Union, thereby pursuing a "Soft Brexit" with Europe as opposed to a "Hard Brexit".
However, Mrs May said she wants to leave the trade regime, claiming the United Kingdom can make better trade agreements with countries such as the USA and Australia outside the bloc.
Lawmakers will have to decide whether to back the government or reject the agreement - with the risk that Britain could crash out of the European Union next year without any deal in place.
MPs vote on a motion to compel the government to drop its policy on the customs union later this week.
The amendment requires ministers to explain the steps taken to negotiate Britain's continued participation in a customs union with Brussels.
Crucially, keeping the customs union would also "go some way to resolving the thorny question of the Irish border, and would allow the United Kingdom to keep its red line of controlling immigration", says Bloomberg.
Shadow Brexit minister Paul Bloomfield said: "This is a welcome decision from the House of Lords". After all, this would be a huge gamble given we are in a hung parliament.
Brexiteers have been muttering about making next month's votes confidence votes, something that is impossible under the Fixed Term Parliaments Act.
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