The grouping of finance ministers and central bankers from the seven big industrialized economies, which will gather in the Mediterranean city of Marseille, will also discuss the health of Europe's banking system after dramatic market sell-offs in August betrayed mounting anxiety among investors.

G7 sources said the agenda for the day-long talks was "fluid" and that G7 chair France would seek to emphasize the group's commitment to preserving the fragile global recovery.

"I'll discuss with my G7 counterparts and central bankers in Marseilles a coordinated response to the economic and budgetary situation," French Finance Minister Francois Baroin told parliament Tuesday. "We're in talks ... to reach agreement on policies to foster growth, create jobs and repay our debts."

One source said the United States, Canada, Japan, Germany, France, Italy and Britain could agree to keep monetary policy accommodative, to slow deficit-cutting where possible and push through structural reforms.  The monetary policy discussion would include issues such as quantitative easing, according to the source.

Reuters