Greek finance minister Yanis Varoufakis expects a deal with Europe on his country’s bailout to come together in the next 48 hours.

Speaking after a meeting of finance ministers ended abruptly when Greece rejected as totally unacceptable a draft Eurogroup proposal, Mr Varoufakis sought to play down the setback as a temporary hitch rather than an impasse.

“I have no doubt that within the next 48 hours Europe is going to come together and we shall find the phrasing that is necessary so that we can submit it and move on to do the real work that is necessary,” he told a news conference in Brussels.

A two-page draft document under consideration by finance ministers and seen by the Irish Times included a number of provisions rejected by Greece, including an “intention to request a 6 months technical extension of the current (bailout) programme as an intermediate step.”

Speaking on the margins of the meeting Greek officials said the proposal was “totally unacceptable.”

Dutch finance minister Jeroen Dijsselbloem, who chaired the meeting, said Athens had until Friday to request a bailout extension, otherwise the programme would expire at the end of the month.

How long Greece can keep itself afloat without international support is uncertain. The European Central Bank will decide on Wednesday whether to maintain emergency lending to Greek banks that are bleeding deposits at an estimated €2 billion a week.

“The general feeling in the Eurogroup is still that the best way forward would be for the Greek authorities to seek an extension of the programme,” Mr Dijsselbloem told a news conference.

Mr Varoufakis hit back, complaining that Mr Dijsselbloem had refused to discuss a proposal from the executive European Commission that would have given Athens a four-month breathing space in return for the new government holding off on major policy changes.

He said he rebuffed a draft statement put to him by Mr Dijsselbloem as the meeting got under way but that he would have signed a text put to him before the meeting by Pierre Moscovici, the EU’s economics commissioner.

The draft document proposed that the Greek authorities “will make the most efficient use of the continued provision of the technical assistance.”

The meeting broke up less than four hours after the Eurogroup of finance ministers began talks with the aim of breaking the deadlock over the Greek bailout, three weeks after left-wing party Syriza swept to power in the general election.

Both sides showed signs of fraying patience, with several ministers complaining of disappointment and fearing disaster. Mr Dijsselbloem spoke of a need to rebuild trust and Greek officials grumbled that Mr Varoufakis was presented with an unacceptable text as soon as he walked into the room.

Mr Dijsselbloem pleaded with the Greeks to buy themselves time to discuss the way forward calmly by requesting an extension.

But he also said: “Would a new programme look very different? I don’t think so. The rules and regulations talk about strict conditionalities. It would still be about fiscal sustainability.”

Speaking on his way into the meeting, Minister for Finance Michael Noonan said he favoured an extension of the programme though he noted that any new programme would have to be sanctioned by the Dáil.

“In my view extension of the programme is the most immediate way of making progress but I would rule out both; an extension of the current programme and the negotiation of a new programme somewhere around mid-summer,” he said.

The draft communiqué also included a provision to make “best use of the inbuilt flexibility in the current programme.”

The proposal also suggested that the Greek authorities should also give their “firm commitment to refrain from unilateral action and will work in close agreement with its European and internatonal partners, especially in the field of tax policy, privitisation, labour market reforms, financial sector and pensions.”

Arriving in Brussels earlier, German finance minister Wolfgang Schaeuble said he was "sceptical" about the possibility of a deal. "What I have heard so far has not strengthened my optimism. It seems like we have no results so far," he said. "I'm quite sceptical. The Greek government has not moved, apparently."

Additional reporting: Reuters