The office of the Greek president said talks were expected to resume on November 10.

Earlier, outgoing Prime Minister George Papandreou made what was expected to be his farewell address to the nation, pledging that the new government would respect the terms of an EU bailout. Without the bailout, Greece risks bankruptcy and an exit from the euro.

Former European Central Bank vice-president Lucas Papademos has set new terms to join the new government.

Mr Papademos was an early front-runner to be the next prime minister. However, later reports suggested his candidacy had run into trouble.

He also said the new government would tackle tax evasion and bring greater transparency to the public finances.

Under the terms of the deal, Greece must enact further austerity measures in return for a bailout of 130bn euros (£111bn; US$178bn) and a write-off of half the Greek debt held by private lenders.

Greece needs the next tranche from the first bailout - worth 8bn euros (£6.8bn; US$11bn) - to avoid running out of money within weeks.