Greece has rejected a eurozone draft proposal that it should extend the current bailout as "absurd and unacceptable."
A draft text presented to eurozone finance ministers referred to Greece extending its current bailout package, and as such was "unreasonable," a Greek government official said in a statement.
"The insistence on the Greek government implementing the bailout is unreasonable and cannot be accepted," the statement said.
Describing negotiations with this premise as a "waste of time," the official said that under those circumstances, "there cannot be a deal today."
Greece's radical left wing government, led by the Syriza party, has vowed to improve the terms of its debt repayments and to secure a better deal for the Greek people on the speed of austerity within its economy.
Greece's creditors, including the International Monetary Fund (IMF,) the European Union and the European Central Bank (ECB,) have pushed for Greece to extend its current bailout on the same terms.
The current deal is set to expire on February 28 and both Greece and its creditors have sought to reach a new agreement that would see Athens receive more financial assistance.
Monday's events in Brussels have increased the likelihood of a so-called Grexit from the euro currency, according to Capital Economics.
"Comments from officials on both sides suggest that even a short-term deal has not been reached at today's Eurogroup finance ministers' meeting, adding to risks that Greece may exit the euro-zone," it said in a statement.