NICOLA Sturgeon has upped her demand for Scotland to get a “special deal” on Brexit after it emerged that the UK Government is seriously considering creating one for the City of London to maintain its prized access to the European single market.

And a senior SNP source has disclosed that if Theresa May were to include the possibility of creating a special status for Scotland in the UK Government's opening position on the Brexit talks, then the First Minister and her colleagues would want to be at the negotiating table. “Why wouldn’t they; it would be Scotland's deal,” he insisted.

READ MORE: Reform of council tax has fallen short

A top Labour insider responded to the suggestion by saying the Nationalists were simply “making demands they know can’t be delivered” with a view to causing a constitutional crisis and preparing the ground for a second independence referendum, possibly as early as autumn 2017. The UK Government is expected to set out its broad negotiating position before Article 50 is triggered by the end of March.

One option the UK cabinet is said to be discussing is of continuing to pay billions of pounds each year into the EU budget to secure the City’s so-called “passporting” rights that allows financial firms to trade freely across Europe.

READ MORE: Brexit adds new layer of difficulty for Football Manager simulation game

But when Downing Street was asked if Mrs May believed it was in any way feasible for one part of the United Kingdom to get special status to remain in the single market while the other parts left, the Prime Minister’s spokeswoman explained Mrs May had been clear the UK Government wanted to “involve the devolved administrations of the United Kingdom as we prepare for the negotiations but this was a decision taken by the people of the United Kingdom. We are members as the United Kingdom and that is how we will approach leaving”.

Asked if it was feasible for Scotland, as suggested by the FM, to have extra powers over immigration as part of a bespoke Scottish package, the spokeswoman replied: “There is a very clear delineation between the issues that are reserved and issues that are devolved. What the Prime Minister does want to do is to work constructively with partners across the UK to secure the best deal for it as we leave the EU.”

As battle lines are drawn ahead of the first crunch Brexit meeting between Mrs May and Ms Sturgeon in London on Monday, a spokesman for the FM said: “The First Minister was given a clear undertaking by the Prime Minister when they met in Edinburgh in July that she would consider proposals we bring forward to protect Scotland’s place in Europe.

“The UK Government has now been reported as pursuing a special deal for the City of London; spending billions of pounds of taxpayers cash in the process. And if special arrangements can be made for the banking and finance sector, they can be made for Scotland, which voted overwhelmingly to stay in the EU,” he added.

READ MORE: Boris told he can attack airport decision - in hint it will be Heathrow

Next Monday, the Joint Ministerial Committee will meet for the first time to discuss Brexit and will also include the devolved administrations in Belfast and Cardiff.

Sinn Fein’s Martin McGuinness, the deputy first minister, is also pushing for special status for Northern Ireland after 56 per cent of its electorate voted remain in the June 23 referendum; the Democratic Unionists backed Brexit.

Mr McGuinness was clear that there should not be a return to the hard border with the Irish republic, saying: “People in Europe are under no illusions whatsoever about the special nature of the problems that we have to deal with."

During a debate at Stormont, SDLP leader Colum Eastwood said local politicians should be “kicking the Prime Minister's door in” to secure special protection for Northern Ireland’s interests in the Brexit talks.

But DUP member Christopher Stalford, a strong Brexit advocate, ridiculed the idea that certain parts of the UK could gain special status within the EU.

Noting how certain constituency areas voted one way and others voted the other, he told the assembly: "Maybe we should carve off the eastern quarter of Belfast and it should stay out of the European Union but the other three quarters should stay in; this is the logic that seeks to divide.

"Where does it end; does London secede from the Union too?"

The SDLP’s non-binding motion calling for special status was defeated by a single vote; 47 to 46.

Meantime, No 10 made clear Mrs May had "full confidence" in Philip Hammond as chancellor amid reports some Cabinet colleagues were becoming frustrated at his support for a "soft Brexit".

READ MORE: Reform of council tax has fallen short

Mr Hammond was said to have angered pro-Brexit ministers after he called for a delay on migration controls over concerns of the impact on business.

Health secretary Jeremy Hunt acknowledged there had been "lively" discussions among ministers but played down suggestions the chancellor had been the victim of a briefing war by colleagues.

The reported flare-up came at a meeting last week of the Cabinet committee on Brexit when Mr Hammond was said to have urged caution after home secretary Amber Rudd raised plans for a work permit scheme for skilled migrants.

Some ministers were said to be impatient with Mr Hammond’s intervention, complaining that he was “arguing like an accountant seeing the risk of everything” rather than complying with Mrs May's instruction to "get on" with Brexit.