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The Chancellor said that Britain could benefit from an economic boost if it successfully negotiated an agreement on Brexit with the European Union.
Philip Hammond told the BBC that there had been a "measurable change of pace" in the discussions, reinforcing the optimistic feeling that an agreement could be imminent.
He said that there were still obstacles, but that the "process" was much more positive.
If an agreement is reached, the UK could benefit from a "transaction dividend" that "would bring us a positive potential" for the economy, he said.
Speaking at the annual meeting of the International Monetary Fund in Bali, Hammond said the UK's economic supervisory office, the Bureau of Fiscal Responsibility, had predicted slowing economic growth because of uncertainties in the economy. Brexit and the risk of no transaction.
If there is an agreement, the OBR would be likely to improve this forecast.
"I believe that there will be a dividend, a transaction dividend for us," he said.
"The forecasts of the OBR, which form the basis of our current forecasts for the economy and our fiscal situation, are based on the midway point between the absence of any agreement and an EEE [European Economic Area] Solution.
"The agreement we are trying to negotiate with the EU now represents an improvement from the point of view of the UK mid-term economy and should therefore bring us an advantage, in the form of higher economic growth and better results otherwise provided. "
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Hammond has also put in place a "fiscal damper" for his budget estimates in case of Brexit disorder.
Part of this $ 15.4 billion could be released if an agreement is signed, which will give a "double boost" to the economy.
"I have always been optimistic about reaching an agreement because it is clearly in the interest of both parties to do so," Hammond said.
"And what has happened in the last 10 days is a measurable change in pace.
"There is now a real sense of commitment from both sides of a shared company in trying to solve a problem rather than posing to each other – a very important change of course.
"But that should not overshadow the fact that we still have big differences to resolve.
"The process is so much more positive this week, but the substance remains very difficult."
