Greece’s Prime Minister Alexis Tsipras is set to call a snap election for 20 September, according to Greek media.
Mr Tsipras has faced a rebellion within his ruling Syriza party over a new bailout deal which has been agreed with international creditors.
Greece received the first €13bn ($14.5bn) tranche on Thursday, allowing it to repay a debt to the European Central Bank and avoid a messy default.
The austerity measures needed for the deal have angered many in Syriza.
Mr Tsipras had to agree to further painful state sector cuts, including far-reaching pension reforms, in exchange for the bailout – and keeping Greece in the eurozone.
The overall bailout package is worth about €86bn over three years