Greece on Monday agreed to a compromise on new reforms in a bid to break a deadlock with its EU-IMF creditors and free up new bailout funds, officials said.

Officials representing the lenders will return to Athens "in the very short term" for fresh talks, said Jeroen Dijssebloem, head of the Eurogroup of 19 countries that use the euro.

"I'm very happy with that outcome today," Dijsselbloem, who is also Dutch finance minister told a press conference.

"They will work with the Greek authorities on an additional package of structural reforms of the tax system, pension system and labour market regulation."

The officials left Athens in December after talks broke down.

Finance minister Euclid Tsakalotos approved measures that will be automatically triggered if Athens fails to meet budget targets, European sources told AFP.

The measures must still however be approved by the Greek parliament, a step that has caused problems in previous deals.

Greece's EU and IMF creditors have been locked for months in a standoff over debt relief for Greece and budget targets demanded from Athens.
The IMF wants the eurozone to cut Greece's mountain of debt and says the targets are too stringent.

Markets have been spooked by fears of a return of the "Grexit" crisis, with Athens at risk of default this summer if it cannot unlock the latest tranche of the huge 86-billion-euro ($91 billion) bailout agreed in 2015.