"That would mean a better deal on migration, but the same offer would be available if we struck trade deals with other countries around the world", the newspaper quoted a source as saying.
Prime Minister Theresa May signalled on Tuesday that she would prefer a "no-deal" Brexit to the offer now put forward by the European Union, stressing that Britain needs to see counter-proposals from the EU to move Brexit negotiations forward.
The Chequers plan has also faced criticism from both pro-Brexit and pro-EU politicians in Britain, and while Raab admitted it had shortcomings, he said it was the only way to deliver Brexit.
May told the 10 Downing St cabinet meeting it had always been clear that negotiations would come to a critical stage.
Meanwhile, hardline Brexiteers piled pressure on May to ditch her Chequers blueprint for leaving the EU.
Speaking to reporters as she flew to NY for the United Nations General Assembly, Mrs May said: "First of all, I have always said no deal is better than a bad deal".
The meeting will take place just hours after the high-profile launch of an alternative plan for leaving the European Union by the free market Institute of Economic Affairs think tank with the backing of former foreign secretary Boris Johnson and former Brexit secretary David Davis.
Mr Rees-Mogg, who leads the Tory backbench European Research Group (ERG), said the Plan A-plus report offered a "supercalifragilisticexpialidocious Canada" deal which the United Kingdom should seize.
"We will challenge this government on whatever deal it brings back on our six tests, on jobs, on living standards, on environmental protections", Corbyn said at a rally in Liverpool, confirming an earlier report that his party plans to call for an election if the deal is defeated in the parliament.
'This is about how you can have a fantastic Brexit that sets us up for the next generation and ensures our prosperity, ' he said.
A spokesman for Mrs May ruled out moving towards a Canada-style deal, warning it would not prevent a hard border with the Republic of Ireland.
And she accused Labour of being ready to accept any proposals the European Union put forward regardless of how harmful they were.
Downing Street said that the system should make it...