Prime Minister Boris Johnson tweeted: "We've got a great new deal that takes back control."
The two sides have been working on the legal text of a deal, but it will still need the approval of both the UK and European parliaments.
The DUP has cast doubt on its success, saying they still cannot support it.
The Northern Irish party earlier released a statement saying they could not back proposals "as things stand", and - after the PM's announcement - said their statement "still stands".
Labour leader Jeremy Corbyn said the deal sounded "even worse" than what was negotiated by the PM's predecessor, Theresa May, and "should be rejected" by MPs.
But European Commission President Jean-Claude Juncker said it was a "fair and balanced agreement".
In a letter recommending the deal to European Council President Donald Tusk, he wrote: "It is high time to complete the withdrawal process and move on, as swiftly as possible, to the negotiation on the European Union's future partnership with the United Kingdom."
The EU's chief negotiator Michel Barnier told a press conference in Brussels: "We have arrived at an agreement with the British government on an ordered withdrawal of the United Kingdom and the European Union and also on the framework for our future relationship.
Meeta develops credible content about various markets based on deep research, opinions from experts and inputs from industry leaders. As the managing editor at Smart Market News, she assures that every piece of news and article adds to the knowledge of decision makers. An avid bike rider, Meeta, is a postgraduate from Indian Institute of Journalism and New Media (IIJNM) Bangalore, where her specialization was Business Journalism. She carries experience from mainstream print media including The Times Group and Sakal Media Group.
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