Talks between Athens and its international lenders broke down after a request by Antonis Samaras, the Greek prime minister, for changes to austerity measures were rejected by the EU and International Monetary Fund.
The Greek parliament has approved a series of unpopular tax rises aimed at boosting revenue in line with Athens' commitments to international creditors.
Although Greeks are set to hold a general strike on Thursday, the Athens government and its international creditors are said to have reached a deal on the austerity measures needed before the next bailout instalment is handed over.
However, slower deficit reduction in Athens would mean Greece's international creditors would have to give it more help in a politically fraught overhaul of Greece's bailout programme.
Greece's international lenders have left talks in Athens without a deal that would secure the next tranche of bailout loans for the country.
"It's anybody's guess what the developments will be from this point on, " said Theodore Couloumbis, professor emeritus in international relations at the University of Athens.
Only two disposals are likely to be completed by December: the state lottery and the former international broadcasting centre for the 2004 Athens Olympics, now a shopping mall.
The IOC delegation did not talk about security - perhaps the main international concern about holding the Games in Athens following the recent murder of Britain's military attache to Greece.
The 31-year-old, who retired after the Athens 2004 Olympics and lost more than seven stone to return to international competition in Delhi, had already taken 50m butterfly silver.
It has promised the International Olympic Committee that a proper mosque will be available in Athens before August 13th, the opening day of the games.
ECONOMIST: Plans to build a mosque in Athens are in disarray
The message from Mrs Merkel and Mr Hollande was that Athens must deliver on fiscal austerity, privatisation and tax collection before asking its international creditors for more favours.
By the time the two hit Athens in 2004, they were already a force to be reckoned with having won international titles.
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Athens (CNN) -- With much of the business and financial world waiting nervously for the results of new elections in Greece, young people on the streets of Athens on Thursday sounded more concerned about the hardships the Greek people are facing than the international consequences of their upcoming vote.
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