ATHENS: The leaders of Greece's two biggest political parties were in talks on Monday to choose the head of a new interim government, after reaching a historic power-sharing deal to accept a massive financial rescue package and prevent imminent bankruptcy.

Socialist prime minister George Papandreou and conservative leader Antonis Samaras held fresh negotiations on the telephone to hammer out the composition of the new 15-week government . The new administration will be tasked with passing the $179 billion package - agreed by international creditors on October 27 - before elections.

Former European central bank vice president Lucas Papademos is being tipped as the most likely new head of the Greek government that would serve until a general election.

Officials in Greece's two main political parties have confirmed the 64-year-old former central banker is a candidate though there's no indication yet he would want the job.

Papandreou and Samaras agreed on the interim coalition late on Sunday under mounting international pressure for cross-party acceptance of the deal. As part of the deal, the PM agreed to step down halfway through his four-year term.

Elected after a landslide victory a little over two years ago, Papandreou's stock took a big battering after his call for a referendum on Greece's latest rescue package.