Athens: Greek Prime Minister George Papandreou is expected to offer his resignation and offer a coalition government.
According to BBC, George is likely to offer a coalition government with former Greek central banker Lucas Papademos at the helm.
The Greek government has been on the brink of collapse over plans for a referendum on a euro zone bailout with turmoil in the ruling party casting grave doubt on whether Prime Minister George Papandreou can survive a confidence vote.
Conservative opposition leader Antonis Samaras had demanded that a transitional government be formed immediately to run the country until snap elections, with the current parliament ratifying the financial rescue for debt-choked Greece.
State television and the state ANA news agency said that Papandreou would meet the Greek president after an emergency cabinet session on Thursday, without giving further details.
Papandreou would have to submit his resignation or a request for a unity government to President Karolos Papoulias.
Papandreou's chief of staff, however, denied the prime minister intended to resign although sources within his PASOK socialist party said some senior lawmakers wanted a Greek former top official at the European Central Bank to head a new government.
"I don't think the government will last until tonight," said Costas Panagopoulos, managing director of pollsters ALCO.
(With Additional Inputs from Reuters)