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New Greek political party to be called Popular Unity

Former Energy Minister Panagiotis Lafazanis will head up the new party Credit: Reuters

Far-left rebels in Greece's Syriza party have broken away to form a new party with 25 politicians, a parliament deputy speaker announced on Friday.

The new party will be called Popular Unity and headed by former Energy Minister Panagiotis Lafazanis, the leader of the far-left faction within Syriza that has defied outgoing Prime Minister Alexis Tsipras's call to back a third bailout programme.

It comes after Tsipras resigned on Thursday.

With 25 politicians, the party would be the third largest block in Greece's 300-seat parliament ahead of the centrist To Potami and far-right Golden Dawn parties, which each have 17 politicians.

Read more: Far-left faction of Greece's Syriza to form new party