French President Francois Hollande has said that EU leaders are "advancing towards" an agreement on a Greek bailout deal but acknowledged that work still remains to be done.
Hollande's comments were echoed by IMF chief Christine Lagarde who stated that "we have a huge amount of work to do on Greece in the next 48 hours."
Greece has blinked first - but is it enough to save the country from bankruptcy?
Thousands of pro-euro demonstrators have gathered in Athens as negotiations appear to be moving Greece close to a bailout deal.
There has been optimism before, but new external pressures may now force a deal over the Greek debt crisis, writes Richard Edgar.