There are reports that Greek Prime minister George Papandreou has struck a deal with ministers to step down and hand power to a negotiated coalition government, if they help him win a vote of confidence.
Earlier, Greece has backed away from a controversial referendum on a bailout, as world leaders including Prime Minister Julia Gillard met in France to chart a way forward.
Ms Gillard has attended the first sessions of the G20 in the resort city of Cannes, amid tension over Greece's sovereign debt crisis.
As the Group of 20 leaders met in the Palace Festival - usually home to the international film festival for which Cannes is best known - Greek Prime Minister George Papandreou met with his Socialist cabinet in Athens.
Mr Papandreou said later he would support the vote on the European Union/International Monetary Fund bailout not going ahead, after facing opposition to the vote from at least four cabinet ministers.
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He has offered to hold talks with the opposition to seek a consensus on the deal.
Greek state television reported Mr Papandreou had ruled out resigning.
"The referendum was never an end in itself," Mr Papandreou said.
"I'm glad that all this discussion has at least brought a lot of people back to their senses."
European leaders agreed last Thursday on 100 billion euros ($A133 billion) in new bailout loans for Greece to accompany a 50 per cent debt writeoff on the debt owed to its private creditors.
The broader plan will also push European banks to strengthen their finances against losses on Greek bonds and strengthen the bailout fund to backstop other governments.
But European leaders were due to suspend putting any money into the fund until after the referendum.
The Greek and eurozone uncertainty has sent shockwaves through world markets.
The European Central Bank provided a shot in the arm by cutting interest rates by 25 points to 1.25 per cent and saying its policy of buying eurozone government bonds would continue.
Australia, China and the United States have all used the G20 summit to seek European assurances that the debt crisis will be properly dealt with.
Ms Gillard was greeted by a fanfare by the Republican guard, as she was officially met by French President Nicolas Sarkozy at the opening of the summit.
Australia has pledged to double its support to the IMF, and Ms Gillard used a leaders session to argue for the dropping of trade barriers.
Ms Gillard met with Turkish Prime Minister Recep Erdogan to discuss the Anzac centenary commemorations, and informally chatted with US President Barack Obama.
Mr Papandreou told caucus members in a 45-minute speech, partly televised by the BBC and translated into English, that the three options were to go to an early national election, carry on with the referendum or achieve a "consensus" with other political parties.
He said he believed a consensus approach was the best way forward.
The Greek parliament will meet on Friday to vote on confidence in the Papandreou government.
Mr Papandreou urged his colleagues to get behind the agreement reached on October 27 and the vote of confidence.
"It will be a guarantee of how we move on and how we negotiate with other political forces," he said.
He said Greece had a "bright and positive future".
