Eurozone leaders have indicated they will no longer rule out selective default on Greece's debt as part of a new bailout package for the country that will likely include a bond-exchange programme among other proposals.

The agreement on the table for a second aid package for Greece provides for lower lending rates by the eurozone's rescue fund and includes a menu of options for private-sector creditors to help the debt-ridden country, according to a person who has seen a draft statement prepared for European leaders to review today.