The EU has refused to give British banks passporting rights to trade within the EU, dashing hopes of a special City deal.
However according to new reports Germany has suggested allowing trade on the condition that the UK continues paying into the EU budget even after the transition period.
The EU has said the UK cannot secure trade deals during the transition period.
Banks in the UK will be hit hard regardless of the Brexit outcome.
May has promised that would not be the case and has suggested that a “specific solution” would need to be found.