Sir Keir Starmer is drawing up plans for a scheme as part of attempts to thaw relations with Brussels following Brexit, according to The Times.
The plan will not offer full freedom of a youth mobility scheme, however, Britons aged 18-30 would be allowed to work and live in the EU for two years, with the possibility of a one-year extension. Reciprocal rights would be given for EU citizens to come to the UK.
The Times says the scheme would be subject to an annual cap with those coming to the UK having to pay a fee for NHS services and unable to claim benefits.
Details are being drawn up in time for talks in London on 19 May.