r said the draft proposals offered "real progress" in each of the four demands he had made of European leaders in his renegotiation of Britain's deal with the EU.
He admitted that more work still needed to be done.
However, European Council president Donald Tusk hailed the package as "a good basis for a compromise".
The new deal includes a "red card" for countries to block unwanted EU legislation and an "emergency brake" to stop in-work benefits for migrants.
But there are still a number of "outstanding issues" including closing a back-door loophole for non-EU migrants and safeguards for non-Eurozone countries.
And a key pledge by Mr Cameron to prevent EU migrants claiming child benefits and sending it back to children in their home country has not been met.
Instead child benefit payments for children living in the EU citizens home country will be linked to the standard of living in that country.
Mr Cameron said: "At the beginning of this process we set out the 4 areas where we wanted to see substantial change, and this document delivers that substantial change.
"But of course there's still detail to be worked on, there's important things to be secured and further work to be done. And of course there's a negotiation at the European Council. So hard work but I think we've made real progress."
Dismissing criticism of the measures he has secured, he added: "On so many things I was told these things would be impossible. I said I wanted a Red Card system for national parliaments to block legislation – people said you wouldn't get that; it's there in the document."
The release of the draft comes after Boris Johnson, who is likely to be a key figure during the referendum campaign, said there was "much, much more ... that needs to be done".
He voiced "doubts" about the "red card" system and the "emergency brake" saying neither appeared to go far enough despite Mr Cameron's "very good job of renegotiating - at huge speed - a very difficult package of measures".
The draft proposal will now be considered by EU leaders before a summit meeting on 18 and 19 February when they will attempt to agree a final renegotiation deal.
Mr Cameron will spend the intervening weeks visiting his East European counterparts, who are most firmly opposed to the "emergency brake" benefits ban and starts with a trip to Poland and Denmark on Friday.
If he gets the deal he wants, the Prime Minister is expected to announce there will be a vote on Britain's continued membership of the EU in June – most likely the 23rd.
If he doesn't then the EU leaders will have another chance to cut a deal at a meeting in March, which would mean a referendum would be put off until September.
The publication of the Tusk document is likely to force MPs to show their position on whether they will side with the leave or remain camps.
An Ipsos Mori poll suggested a fifth of Tory MPs will vote for Brexit regardless of any deal.
Mr Cameron has said Cabinet members are free to campaign according to their consciences but only once the renegotiation deal is finalised later this month.
Leader of the House Chris Grayling as already indicated he could campaign with the Leave campaign.
Theresa May and Boris Johnson have yet to give any hint, but both have been wooed by Brexiteers.
The Home Secretary is said to be pushing Mr Cameron to secure tougher measures on migration that will end a back-door route allowing non EU spouses of EU migrants into Britain.
Eurosceptics have claimed Mr Cameron's demands were not enough, that the negotiations are carefully choreographed fudge and that they will do nothing to stop the flow of EU migrants.
Anne-Marie Trevelyan (Berwick-upon-Tweed), a member of Conservatives For Britain, told the Radio 4 Today programme she thought she "will be ending up voting to leave".
She said: "It's all really rather trivial, as far as I'm concerned. I was hoping to see something much more confident and focused on what Britain needs."
Speaking about the "red card" system, which would mean 15 of the 28 EU countries could club together to block EU legistation, was not a measure that "allows us to take control of our country".
Leave EU pointed out that because the "red card" measure would not be enshrined in treaty change and would be ignored by the other countries.
There has also been criticism of the "emergency brake" measures, which will allow the UK to stop in-work benefits for EU migrants if the country's services were overwhelmed.
Mr Cameron won agreement that Britain's services were already strained by immigration levels and the brake would apply from the day after the referendum – if the public votes to stay in the EU.
However, it only applies for four years, although Mr Cameron is pushing for seven, and is considered a stop gap, even by the Prime Minister, until a proper solution can be found.
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