British Citizens might need to apply for visas if they want to travel across Europe.
Proposed changed may mean travellers from non-EU countries could be forced to apply online for a visa and pay a fee before travelling to the continent - similar to the American 'Esta' document.
Currently British passport holders can travel throughout member states without having to apply for short-term visas.
But Britain's decision to leave the EU has left question marks over the criteria needed for UK nationals to visit the Schengen zone.
A scheme reportedly being debated by the executive body of the European Union suggests the 26-nation passport-free Schengen zone - which does not include the UK - could start to operate a visa programme similar to the US waiver.
According to The Guardian, the European Commission (EC) is due to unveil draft legislation for the EU travel information and authorisation system (Etias) later this year.
The move response to calls for greater security across the continent following recent terror attacks in France and Belgium.
The scheme would cover all visitors to the Schengen zone from countries that do not need a visa to enter.
Labour MP Pat McFadden, of the Open Britain campaign, said: "Reality is setting in. Introducing visas would hurt British businesses and families going on holiday.
"The Leave camp repeatedly said visas wouldn't be introduced but it now looks like another of their main promises is being broken."
Camino Mortera-Martinez, a research fellow specialising in justice and home affairs at the Centre for European Reform, said: "In theory UK citizens, as third-country nationals, would certainly be subject to the obligations.
"This will have to be part of the Brexit talks. It will all have to be negotiated."
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