LONDON (REUTERS) - The European Union is preparing to offer Boris Johnson, the favourite to be Britain's next prime minister, a no-deal Brexit extension beyond Oct 31, the Guardian newspaper reported on Friday (July 19).

"It will be described as a technical delay to save Boris from political embarrassment but then we will have time to find an agreement," a senior EU diplomat told the newspaper.

Johnson could maintain the stance of being on course to leave EU without an agreement while keeping open the option of coming to a deal with the bloc, according to the proposal cited by the Guardian.

EU leaders are discussing steps to be taken in the event Johnson presses ahead with exiting the European Union without a transition deal on Oct 31, the newspaper said.

A declaration expressing the EU's offer to re-engage if Britain were to accept its financial commitments in any divorce from the EU has been proposed, the report added.

Britain is currently due to leave EU on Oct 31, more than three years after the United Kingdom voted by 52% to 48% in a referendum to leave the bloc.