Greece may receive a new prime minister later on Sunday during the urgent talks on coalition government, Greek government spokesman Elias Mossialos said.
“The agreement on the coalition government and on the new prime minister is likely to be signed during the day,” Mossialos told the national Greek TV channel.
Greek government will hold an urgent Cabinet meeting at 4 p.m. (14:00 GMT), where the Prime Minister George Papandreou may announce his resignation.
The leader of the opposition New Democracy party, Antonis Samaras said that Papandreou must step down before any coalition discussions.
Papandreou, who survived on Saturday a crucial parliamentary confidence vote, started talks to establish a four-month temporary coalition to safeguard Europe's new debt agreement.
International pressure and a looming collapse of his government forced Papandreou on Thursday to abandon his plans to hold the referendum on the new 130-billion-euro rescue package for Greece, which was approved by euro zone leaders on October 26.
Papandreou's referendum proposal, announced earlier this week to the surprise of everyone, including his own ministers, triggered international turmoil, with European leaders threatening to expel Greece from the euro zone if the new bailout package, which requires the Greek government to implement new tough austerity measures, is rejected in the popular vote.
