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EU citizens should face the same immigration rules as those elsewhere, once the UK has completely left the bloc, the cabinet has agreed.
The agreement in principle follows a recommendation of the Independent Advisory Committee on Migration (MAC), also supported by the Labor Party.
The cabinet unanimously supported a system based on skills rather than nationality, said a source at the BBC.
However, some fear that an embargo on low-skilled migrants from the EU could harm businesses.
The Prime Minister has repeatedly pledged to put an end to unlimited immigration from Europe after Brexit.
BBC political editor Laura Kuenssberg said, "Ending freedom of movement in its current form has become a non-negotiable rhetoric for Theresa May."
The cabinet agreement came after a presentation from MAC chairman, Professor Alan Manning, at a lengthy meeting on Monday.
According to one source, the principle was that the United Kingdom would not be biased towards immigrants from one part of the world over another when granting access to work.
However, a cabinet source told the BBC that the deal was not a firm decision.
What is the Advisory Committee on Migration?
- Independent public body, the MAC has been commissioned by the Home Office to advise the government on migration issues
- The panel is composed of Professor Manning and five other independent economists, as well as a representative of the Home Office.
- It deals with issues such as the impacts of immigration, the limits of immigration in the points system and skill shortages in the professions.
The principle of freedom of movement of the EU currently allows citizens of the European Economic Area – all countries of the EU, as well as Norway, to Iceland and Liechtenstein – and Switzerland to travel and work without a visa, regardless of their skills.
The United Kingdom is expected to withdraw from the European Union on March 29, although an "implementation period" until December 31, 2020 has been agreed.
During this transition period, EU citizens arriving in the United Kingdom will enjoy the same rights and guarantees as those who arrive beforehand. The same thing will apply to British expatriates on the mainland.
We still do not know what would happen in case of Brexit "without agreement".
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Under the current immigration system, most non-EU workers are assessed whether or not their skills are required by the UK economy.
Last week, MAC demanded that the annual limit on the number of highly skilled workers from outside the EU be allowed to be fired.
Currently set at 20,700 per year, the ceiling, imposed by Ms. May at the Home Office, has resulted in the denial of visas to thousands of computer specialists and NHS candidates.
A change in the rules for NHS workers was announced in June after pressure from health officials.
Advocacy groups such as the Campaign for Science and Engineering have argued that job offers in other fields, such as science and engineering, should also be exempted from the rules.
Labor has proposed to completely abolish net migration targets and to introduce a "flexible work visa" available to "all who should come here" who could prove real skills, such as doctors, scientists or caregivers.
And Interior Minister Sajid Javid has already stated that he was taking a "new look" at the Tier 2 cap.
Some business groups, particularly in sectors such as agriculture and hotels, have warned that any future arrangement prohibiting low-skilled migrants could cause enormous disruption.
Last month, the CBI warned that the UK "may have too few people to manage the health service, choose food crops or deliver products to the country's stores" if the redesign was wrong made.
The Prime Minister could make an announcement regarding the new rules on immigration at the Conservative Party conference next week.
