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.
Mr Tsipras is to make a televised state address later on Thursday.
He is set to submit his resignation to the president to clear the way for the elections, the media reports said.
The rebellion in Syriza meant Mr Tsipras had effectively lost his parliamentary majority.