The agreement, reached late on Friday after two days of talks in Brussels, gives the UK power to limit some EU migrants` benefits.

It also includes a treaty change so the UK is not bound to "ever closer union" with other EU member states, he said.

EU exit campaigners said the "hollow" deal offered only "very minor changes".

The agreement on renegotiating the UK`s EU membership was announced by European Council president Donald Tusk, who tweeted: "Deal. Unanimous support for new settlement for #UKinEU."
It paves the way for the UK to hold an in/out referendum on EU membership, which has been promised by the end of 2017 but is expected in June this year.
The new deal includes:

-An "emergency brake" on migrants` in-work benefits for four years when there are "exceptional" levels of migration. The UK will be able to apply the "brake" for migrants arriving for seven years

-Cuts in child benefit for the children of EU migrants living overseas - applicable immediately for new arrivals and from 2020 for the 34,000 existing claimants

-The amending of EU treaties to state explicitly that references to the requirement to seek ever-closer union "do not apply to the United Kingdom", meaning Britain "can never be forced into political integration"

-The ability for the UK to enact "an emergency safeguard" to protect the City of London, to stop UK firms being forced to relocate into Europe and to ensure British businesses do not face "discrimination" for being outside the eurozone

German Chancellor Angela Merkel predicted the package of reforms would "elicit support in the UK for the country to remain in the EU".

Mr Tusk said it "strengthens Britain`s special status", while EU Commission president Jean-Claude Juncker described it as "fair".

Mr Tusk added: "We didn`t walk away from the negotiating table. We were willing to sacrifice part of our interests for the common good, to show our unity.

"I deeply believe the UK needs Europe and Europe needs the UK. But the final decision is in the hands of the British people."

Once Mr Cameron has briefed his ministers at Saturday`s cabinet meeting, they will be free to campaign for either side in the referendum.

Mr Cameron said he would shortly announce the date of the vote and said he was "disappointed" but not surprised that one of his key allies, Justice Secretary Michael Gove, was to campaign for the UK to leave the EU.

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