Euro zone finance ministers have provisionally granted Greece a two month "technical extension" to its €245bn bailout.
The move comes amid violence scenes in Athens over the prospect of Greece entering a sixth year of austerity measures.
The Eurogroup of finance ministers said in a statement that if a series of fiscal adjustments were carried out within the two month period, the euro zone's rescue fund - the EFSF - would release the final tranche of the country's bailout.
The Greek government is expected to make a formal request for the extension tomorrow.
At a later date the euro zone is expected to favourably consider an application by Athens for a precautionary credit line.
Both Ireland and Portugal chose not to apply for a precautionary credit line when they exited their respective bailouts.
When the Greek prime minister Antonis Samaras raised the prospect of Greece exiting the programme without a credit line in October, Greek borrowing costs rose considerably.
A statement by the Eurogroup read: "The Eurogroup urges the Greek authorities to ensure a rapid and full implementation of all the reform measures necessary to conclude the fifth review.
"These reforms are key for the smooth functioning of the Greek economy and will contribute to bringing about sustained growth and employment and to secure the sustainability of public finances, thereby fully delivering on the programme objectives."
Greece's parliament approved next year's budget in the early hours this morning, the plan being closest to a balanced budget Greece has produced in more than three decades.
Prime Minister Antonis Samaras is struggling to push through an early exit from the bailout and ensure the survival of his government after a presidential vote next year.
However a row with the EU and IMF over a disputed budget shortfall next year has held up the country's final bailout inspection and plans to exit the aid programme.
Greece's lenders are demanding €1.7 billion in additional measures to hit budget targets next year, something Athens has rejected.
Earlier the head of the Eurogroup meeting of euro zone finance ministers, Jeroen Dijsselbloem, said he was "not confident at all" about the deadlines over the Greek issue.
"I'm very worried about time constraints and all parties involved should try as hard as possible to go as far as possible before the year is over," he said before a discussion on Greece scheduled for the afternoon.
German Finance Minister Wolfgang Schaeuble said Greece may need some more time before the last bailout credit tranche can be disbursed by international lenders, adding however that overall the country was on the right path.
I was also announced today that Greece is to hold its first round of presidential elections on 17 December.
