Greek Prime Minister George Papandreou's government is ready to hold talks with the opposition on its demand for a caretaker government until snap elections are held, a government spokesman said on Thursday.
Papandreou's concession comes as his government appeared on the verge of collapse after his call for a referendum on Greece's bailout package sparked an uproar in the country and abroad.
The opposition New Democracy party had earlier on Thursday called for a transitional government to lead the country until it secures a vital aid payment from foreign lenders, with a view to new elections after the funds are received.
"We welcome New Democracy's decision to support the Oct. 26 deal," spokesman Ilias Mossialos told reporters, referring to the EU bailout deal struck last month.
"As far as the other proposals are concerned, we are ready to seriously discuss them, in the interest of country."