Brexit minister David Davis says EU migrants who arrive between now and the UK's departure from the bloc may not be given the opportunity to stay, in order to prevent a last-minute rush to Britain.
Mr Davis wants to secure "a generous settlement for EU migrants here now and a generous settlement for British citizens in the EU" - but this may not apply to newcomers.
On the possibility of a surge of migrants before the departure, Mr Davis told The Mail On Sunday: "We may have to deal with that. There are a variety of possibilities.
"We may have to say that the right to indefinite leave to remain protection only applies before a certain date. But you have to make those judgments on reality, not speculation."
Mr Davis also claimed Article 50, the two-year mechanism for leaving the EU, should be invoked by early 2017 - meaning the UK would be out by 2019.
Meanwhile, Australia has called for a free trade deal with the UK as soon as possible.
New Prime Minister Theresa May spoke to Australian counterpart Malcolm Turnbull on Saturday.
She said the phone call proved leaving the European Union could work for the UK.
Mrs May said: "I have been very clear that this Government will make a success of our exit from the European Union.
"One of the ways we will do this is by embracing the opportunities to strike free trade deals with our partners across the globe.
"It is very encouraging that one of our closest international partners is already seeking to establish just such a deal."
A new poll suggests Mrs May should not call a second referendum on any deal the UK reaches with the bloc.
In a ComRes poll for the Sunday Mirror and The Independent, 57% rejected calls for a second referendum - an idea backed by Labour leadership candidate Owen Smith. Some 29% were in favour.
Mrs May also enjoyed a commanding lead over her Labour counterpart Jeremy Corbyn - with 55% saying she is a strong leader compared with 13% for the Opposition leader.
:: Brexit minister David Davis and the Labour leadership challenger Angela Eagle will both be on the Murnaghan programme on Sky News from 10am this morning.
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