A deal to return the Parthenon Sculptures to Greece is “still some distance” away, the chairman of the British Museum has said.

George Osborne, the former Tory chancellor, was responding to comments this week from a former adviser to the Greek government that “negotiations have gone forward” and a deal was “close”.

Greece maintains the ancient antiquities, also known as the Elgin Marbles, were illegally removed from Athens’ acropolis, and has has long called for their return from the museum.

Mr Osborne suggested Prime Minister Sir Keir Starmer had contributed to a warmer tone for negotiations and said the museum is looking at the possibility of a long-term loan.

The British Museum is forbidden by law from giving away any of its artefacts.

And any potential arrangement would see it lend the Elgin Marbles back to Greece temporarily in exchange for a rolling display of other Greek artefacts.

Speaking on the Political Currency podcast, which he hosts alongside former Labour politician Ed Balls, Mr Osborne said “we made a lot of progress on that, but we’re still some distance from any kind of agreement”.

Downing Street has indicated the prime minister is unlikely to stand in the way of such a deal. But the government has no plans to change the law to allow the sculptures to be moved permanently.

The status of the sculptures has been a source of diplomatic tension between the UK and Greece for decades.

The former Greek government adviser Prof Irene Stamatoudi told the BBC on Tuesday that a deal to return the Parthenon Sculptures was “close”.

It came as Sir Keir Starmer and his Greek counterpart met for talks in Downing Street – though it is unclear whether the Elgin Marbles were discussed.

An official account of the meeting released by No 10 made no mention of them, though Greece’s public broadcaster ERT claimed they had been raised in the talks.

A Downing Street spokesperson refused to be drawn over whether or not they were brought up.

Greek Prime Minister Kyriakos Mitsotakis has made securing the return of the Elgin Marbles a political priority.

He previously said having some of the sculptures in the UK and the rest in Athens was “like cutting the Mona Lisa in half”.

Tensions between the two countries over the artefacts neared breaking point in November last year, when then-Prime Minister Rishi Sunak cancelled a meeting with Mitsotakis at the last minute.

Mr Osborne contrasted the former Conservative PM’s approach with Sir Keir’s, saying: “It is not the same as Rishi Sunak, who refused to see the Greek prime minister, if you remember, he sort of stood him up.

“So it seems to me a more sensible and diplomatic way to proceed.”

The sculptures were crafted in the 5th century BC and were originally displayed in the Parthenon in Athens. They are considered among the most prized antiquities from the Ancient Greek period.

They were removed by British aristocrat Lord Elgin over 200 years ago, while Athens was part of the Ottoman Empire.

They were badly damaged en route to London, where they have been displayed ever since.

Greece has long maintained that the sculptures were stolen, but the British Museum rejects this and says they were legally obtained.