Britain was originally due to leave the European Union on March 29, but that deadline was pushed back to April 12 and then again to October 31.
"EU27/UK have agreed a flexible extension until 31 October," European Council President Donald Tusk tweeted after eight hours of talks that went into the early hours of Thursday.
Britain was originally due to leave the EU on March 29, but Brussels agreed an extension after the British parliament rejected the withdrawal agreement negotiated with May.
The move by Britain's biggest carmaker, to prepare for any disruption resulting from Brexit, was taken a few months ago at a time when the departure date - since extended to April 12 - was March 29.
The British Prime Minister sought to defend her move to reach out to Opposition Labour Party leader Jeremy Corbyn in an attempt to break the ongoing parliamentary deadlock over Britain's impending exit from the European Union.
Britain is due to leave the EU on April 12 unless May can secure another delay from the EU, which already agreed to postpone the Brexit day originally set for March 29.
Theresa May has written to Brussels asking EU leaders to postpone Britain's exit from the bloc next Friday until June 30.
In her letter, Theresa May notes that it is not in the interests of the UK or the EU to go down this route, but accepts it as an inevitable "legal obligation".
Amid the uncertainty of a hard Brexit the clock is running towards the new Brexit Day. Till the deadline date there are an array options ahead for UK which is likely to create high volatility for pound.
Corbyn's comments came after May decided to seek a further "short" Brexit deadline extension from the European Union to give her time to forge a new approach and get her current deal with Brussels approved by parliament.
The EU has put in place a series of contingency measures to deal with a no-deal Brexit, which in the financial sector include a temporary recognition of Britain-based clearing houses which process multi-trillion-euro derivative transactions.
Goldman Sachs cut to 45 percent from 50 percent the chance that a modified version of the current withdrawal agreement is eventually approved in the House of Commons.
After a special sitting of parliament, lawmakers voted 344-286 against May's 585-page EU Withdrawal Agreement, agreed after two years of tortuous negotiations with the bloc.
The pivotal vote takes place on the day Britain was supposed to leave the European Union, until May asked the bloc's leaders last week for a little more time.
May pledged on March 27 night that she would stand down if the deal were approved, in hopes of blunting opposition from lawmakers who have criticized her leadership.
May told her Conservative lawmakers she would step down if her Brexit deal was finally passed by parliament at the third attempt, in a last-ditch bid to win over many of her party's eurosceptic rebels.
If Britain is still an EU member on that date, it would have to take part in the vote, and wrangling over Brexit would continue to disrupt the European political agenda for months or years to come.
Three years after a referendum in which Britain voted to leave the European Union, the country is gripped by painful uncertainty over how -- or even whether -- it should put an end to its 46-year membership.
Vaibhavi Khanwalkar gets in conversation Moneycontrol's Anubhav Sahu to find out more about how this situation will play out.
The move came after Theresa May conceded that Parliament would defeat her twice-rejected divorce deal with the EU again if she put it to a third vote.
'It is with great regret that I have had to conclude that as things stand, there is still not sufficient support in the House to bring back the deal for a third Meaningful Vote,' May told the Commons.
May told Boris Johnson, Iain Duncan Smith, Steve Baker, Jacob Rees-Mogg, David Davis et al at Chequers that she will quit if they vote for her deal, the report said.
The United Kingdom's exit from the European Union was already slipping from May's weakened grasp as she struggled to increase support for her deal and parliament prepared to grab control of Brexit in the coming days.
Lawmakers have twice rejected the deal.