Greek Prime Minister George Papandreou says he is prepared to drop plans for a referendum on the EU bailout if he wins parliamentary support for the package.
The change of heart emerged after the conservative opposition - which had vehemently objected to the government's loan agreements with the EU, ECB and IMF - said it would support the €100bn bailout.
"I will be glad even if we don't go to a referendum, which was never a purpose in itself. I'm glad that all this discussion has at least brought a lot of people back to their senses," he said in the text of a speech to his cabinet released to media.
"We had a dilemma - either true assent or a referendum. I said yesterday, if the assent were there, we would not need a referendum."
Speaking in parliament this evening, Mr Papandreou said that he was not tied to his post, following uproar over his plan for a referendum on a euro zone bailout for the country.
He made the comment during a parliamentary debate. The chamber is due to hold a confidence vote tomorrow and the government's survival is in doubt following unrest in the ruling socialist party over the referendum plan.
Mr Papandreou said talks with the opposition must start immediately.
"My position is that talks with the opposition for the formation of a broader scheme should start immediately. Let's do it as fast a possible, carefully, without dangers," he said.
Reuters cited Greek government sources as saying that Mr Papandreou had struck a deal with ministers to step down and hand power to a negotiated coalition government if they help him win the confidence vote.
An emergency cabinet meeting was held this morning when a number of ruling party figures said they would not back the government in the confidence vote.
Opposition leader Antonis Samaras, whose right-wing party has 85 seats in the 300-member parliament, called for a transitional government to keep the debt deal afloat and to call snap elections.
It marked an change by Mr Samaras, who had consistently opposed the loan agreements negotiated by the Greek government - on the grounds that they stifled growth and worsened recession.
Eurozone leaders had warned Greece that the €100bn deal would be "fatally undermined" by plans to hold a referendum to ratify it.
French President Nicolas Sarkozy and German Chancellor Angela Merkel told Mr Papandreou in Cannes last night that Athens would not receive a cent more in aid until it votes to meet its commitments to the eurozone.
Greece is due a vital €8bn instalment this month.
