Story highlights

British Prime Minister David Cameron will present the proposed deal to his cabinet

He says Britain will not adopt the euro or become "part of a European superstate"

European Union leaders reach a deal that will keep Britain in the EU

CNN  — 

[Breaking news update, Saturday, 3:46 a.m. ET]

British Prime Minister David Cameron said he will announce a date for the country’s in-or-out referendum on EU membership after a Cabinet meeting on Saturday. “The Cabinet will this morning discuss the UK’s new special status in the EU - afterwards I’ll announce the planned referendum date,” Cameron posted to Twitter.

[Previous story published Friday, 9:45 p.m. ET]

(CNN) – European Union leaders reached a deal Friday to keep Britain in the organization with “special status,” UK Prime Minister David Cameron announced, saying he’ll present the deal to his cabinet on Saturday morning.

If approved by the cabinet, the issue would go to the British people in a referendum – perhaps as early as June – that would be “a once-in-a-generation moment to shape the destiny of our country,” Cameron said at a news conference.

After two days of tense talks in Brussels, Belgium, with other EU leaders, Cameron said the EU provided the concessions he sought, including assurances that the other nations won’t try to make Britain part of a “European superstate.”

“There will be tough new restrictions on access to our welfare system for EU migrants,” he said. “No more something for nothing. Britain will never join the euro, and we’ve secured vital protections for our economy and a full say over the rules of the free trade single market while remaining outside the euro.”

World leaders praise deal

World leaders praised the deal, with German Chancellor Angela Merkel saying the EU leaders clearly wanted Britain to stay.

“We believe we have now given a package to David Cameron to elicit support in Britain for Britain remaining a member of the European Union,” she said. “This was his goal after all. There was no doubt about it.”

At the heart of the talks among the 28 EU heads of government were Britain’s demands to play by special rules within the union. The demands left some EU leaders cold, but there was no great appetite to see a British exit from the EU – or “Brexit,” as it has come to be known.

A British departure would leave the EU diminished. It would lose its second-largest economy – behind that of Germany – and one of its two permanent seats on the U.N. Security Council. (France holds the other)

Cameron was upbeat at his news conference, saying, “Our plan for Europe gives us the best of both worlds.”

Britain would maintain full access to the EU’s free-trade market and benefit from Europe-wide cooperation on crime and terrorism, he said.

But Britain would not have to cooperate in “the parts of Europe that don’t work for us,” such as the euro currency and eurozone bailouts, Cameron said.

“I have negotiated a deal to give the United Kingdom special status inside the European Union,” he said. “I will fly back to London tonight and update the cabinet at 10 a.m. tomorrow morning.”

So what’s happening Thursday?

A report Wednesday in The Guardian newspaper says four Eastern European countries – Poland, Slovakia, Hungary and the Czech Republic – have rejected Britain’s proposals to limit benefits for migrant workers. The report emerged a day before the Brussels meeting.

Britain opted out of both those EU provisions, and it views with skepticism the EU’s effort to branch into new fields, regulating everything from pesticides to human rights, and creating a unified foreign policy, too.

Merkel said Britain’s demand not to pay benefits to migrants from other EU countries had been a sticking point.

“All of the different baskets of the requests of Britain on the agenda were discussed, and it is true that not each and every one around the table had it all that easy to agree to those requests, but there is a will,” Merkel said Thursday.

In essence, Cameron is trying to thread the needle. He wants to be able to say the he negotiated firmly with the bureaucrats – sometimes called “eurocrats” – in Brussels. He wants to opt out of the standard EU commitment that its members must work toward “ever closer union.” He wants Britain exempted from having to give various social benefits to newcomers – even from other EU countries – until they have lived in the country for several years.

He wants Britain exempted from having to give various social benefits to newcomers – even from other EU countries – until they have lived in the UK for several years.

Police spray tear gas at migrants trying to access the Channel Tunnel in France.

There seems a whiff of cultural bias as well among a few opponents of British membership in the EU. While there is no outcry about immigration from the United States or Australia, for example, some members of the main anti-EU party, UKIP – the United Kingdom Independence Party – have made remarks tainted by prejudice.

Have there been problems before between EU and UK?

Britain has always stood apart from the EU to some extent, displaying a bit of the island mentality.

The country’s difficult relationship with the EU is nothing new. In the 1960s, French President Charles de Gaulle not only opposed Britain’s entry into what was then called the Common Market, he also opposed any negotiations on the topic.

Britain didn’t join the European Community, as it was then called, until 1973, by which time de Gaulle was dead.

Reading the local papers, one might think, for instance, that the EU has a massive bureaucracy. In fact, the EU employs about 23,500 people to look after its 28-nation area. By contrast, there are about 6 million government employees in the UK alone.

And the historic number of people fleeing conflict and poverty in the Middle East and North Africa – most of them bound for Europe – only increases the chances that Britons, fearful about their jobs and their national identity, will try to pull up the drawbridge and go it alone.

Furthermore, while Cameron expects to campaign for Britain to stay in the EU, the Tories are divided on the issue, with some senior members of his party favoring an EU exit.

For his part, President Barack Obama has urged Britain to stay in the EU. The UK as a member of the EU “gives us much greater confidence about the strength of the transatlantic union,” Obama said in July.

Donald Tusk, president of the European Council, said the agreement doesn’t compromise “our fundamental values.”

“I deeply believe that the United Kingdom needs Europe and Europe needs the United Kingdom,” Tusk said. “To break the link now would be totally against our mutual interest. We have done all we could not to let that happen. But the final decision is in the hands of the British people.”

Belgian Prime Minister Charles Michel tweeted: “We overcame our differences to reach a good #agreement. Now up to British people to decide. Good luck @David_Cameron.”

Cameron said economics wasn’t the only reason to stay in the EU. Security was another issue, especially in the age of terrorism, Cameron said.

“This, in my view, is a time to stick together, a time for strength in numbers,” he said.

CNN’s Anna Stewart in Brussels, Lindsay Isaac, Pierre Meilhan and Catherine E. Shoichet contributed to this report.