UPDATE 1-EU's Barnier says he needs Brexit text agreed Tuesday to recommend deal at summit - sources

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LUXEMBOURG, Oct 15 (Reuters) - The European Union's Brexit negotiator Michel Barnier told the 27 member states staying in the bloc after Brexit that the latest British proposals on a departure deal were not yet good enough, three diplomatic sources said.

Barnier also said he needed a legal text agreed by the end of the day to recommend that a summit of EU leaders on Thursday and Friday approves any deal, the sources said.

Otherwise, he was likely to recommend that more talks with Britain were needed past the summit later this week, the sources added.

"There is a deadline today evening to agree on legal text," one senior EU diplomat said as Barnier was debriefing the room.

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Another said there was no formal deadline but that Barnier explained to the room he needed agreement on the legal text by the end of the day to be able to tell EU diplomats due to meet in Brussels on Wednesday that his recommendation was that the Thursday-Friday leaders' summit approves a deal.

"The work continues, there is still a possibility for a deal," a third EU diplomat said.

(Reporting by Gabriela Baczynska Editing by Angus MacSwan)

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