The leader of Greece's socialist party, Evangelos Venizelos, has abandoned efforts to form a new government, the BBC reports.

Venizelos, the third leader to try to forge a coalition following Sunday's inconclusive elections, said he would meet the president on Saturday in a last-ditch effort to avoid fresh polls.

There has been no breakthrough in Venizelos' talks with other parties.

Greece is deeply divided over budget cuts demanded in return for a bailout by the EU and the IMF.

The country's debt crisis has raised the possibility it could default and be forced out of the eurozone.

Following talks with other party leaders on Friday, Venizelos told reporters: "I am going to inform the president of the republic tomorrow and I hope that, during the meeting with Carolos Papoulias, each party will assume its responsibilities."

The president is expected to try to pressure parties into a government of national salvation - but the BBC's correspondent in Athens says he is unlikely to succeed.

The country would then be facing the prospect of fresh elections, and this would be a leap into the unknown, the correspondent adds.

Sunday's election saw a surge in support for parties opposed to the terms of the bailout, as well as a backlash against Pasok and the conservative New Democracy party - which had formed the outgoing coalition.

Pasok, which was seen as the architect of austerity, came third with just 41 seats in the 300-seat parliament.