Greece’s Prime Minister George Papandreou has won a vote of confidence in his government by 153 votes to 145.
151 votes were needed to secure a majority.
Speaking ahead of the confidence vote, Mr Papandreou called for a new coalition to approve the bailout deal agreed last week, and signalled he was ready to stand down.
Mr Papandreou told parliament that he would go to the Greek president tomorrow to discuss formation of a broader-based government that would secure the €130bn bailout, adding that he was willing to discuss who would head a new administration.
"The last thing I care about is my post. I don't care even if I am not re-elected,” he said. “The time has come to make a new effort... I never thought of politics as a profession."
Also speaking before the vote, Greek Finance Minister Evangelos Venizelos said that any new Greek coalition government must approve the eurozone bailout deal and is expected to last until the end of February.
"The broader coalition government to be formed must regain the country's international credibility and ensure the fast disbursement of €30bn for the recapitalisation of Greek banks," Mr Venizelos told parliament.
The nature of such a new government would be open to discussion but must be made up of politicians, he said.
Greek conservative leader Antonis Samaras rejected Mr Papandreou's call for a coalition government, demanding immediate elections.
"Mr Papandreou rejected our proposal. The only solution is elections," a spokesman for his New Democracy party quoted Mr Samaras as saying.
Earlier, Greece's finance ministry said the government had dropped its plans to hold a controversial referendum on the country's euro zone membership, which had threatened to plunge the zone into a crisis.
Mr Venizelos made the pledge in telephone calls made to Eurogroup chairman Jean-Claude Juncker, the European Commission's Economy and Monetary Affairs chief Olli Rehn and German finance minister Wolfgang Schauble, the Greek finance ministry said in a statement.
Under intense pressure from fellow European leaders, Papandreou dramatically backed down on the eve of the confidence vote from a shock pledge to put a hard-fought EU bail-out deal to a referendum that enraged the EU and sent markets tumbled.
And while EU officials reacted cautiously to the about-face, warning that actions not words counted, markets cheered the decision, as it eased fears the painstakingly cobbled together debt deal would fall apart.
As the turmoil on the Greek political scene intensified, the debt-wracked country, enduring its worst post-war economic crisis, is in danger of running out of cash in little over a month.
Mr Venizelos had admitted that Athens "absolutely needed" an €8 billion slice of aid that has been blocked by EU leaders furious at Papandreou's referendum gamble.
For the first time, the likes of Germany's Angela Merkel raised the spectre of Greece leaving the euro, hiking the pressure on the politicians in Athens to strike a deal if they wanted to remain in the bloc.
