Amid opposition from Britain`s 27 European Union partners, British newspapers reported Sunday that Prime Minister David Cameron was ready to drop the demand for a four-year wait before EU migrants who are employed in Britain can claim welfare payments.

Cameron has promised to hold a referendum on Britain`s membership of the bloc by the end of 2017. He says he will campaign to stay in the EU only if he gets a reform deal.

Speaking as he arrived for a meeting of EU foreign ministers in Brussels, Hammond denied that Cameron had dropped the plan but admitted that "we`ve heard that a lot of our partners in Europe have concerns about it."

"So far we haven`t heard any counter-proposals, we haven`t heard any alternative suggestions that will deliver the same effect in a different way," Hammond said.

"But we`ve made very clear that if people have other ideas that will deliver on this very important agenda for the British people, we`re absolutely prepared to listen to them, and we`re prepared to enter into a dialogue with them."

European diplomats told AFP last week that the EU was examining a possible "emergency brake" on migration instead of Cameron`s plan.

It would allow Britain to limit migration from the rest of the EU if its public services are overwhelmed or its welfare system is being abused.

Hopes that a deal to avoid a so-called "Brexit" from the EU could be reached at an EU summit this Thursday and Friday were scuppered by what European Council President Donald Tusk called a lack of consensus on the welfare issue.

Other EU leaders say it would violate the EU`s fundamental principle of free movement to work.

Tusk said he expected an accord at the next summit in February as there is broad agreement on Cameron`s other demands.

They include greater fairness for countries like Britain that do not use the euro currency, an opt-out from the EU`s aspiration of "ever closer union" and greater economic competitiveness.

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