A diplomat has said that France and Greece agreed on Thursday to support a rescue plan for debt-burdened Greece that includes International Monetary Fund intervention.

A diplomat speaking anonymously spelled out the deal, which includes a bilateral loan from the 16 members of the eurozone at market rates and the use of IMF funds, if needed, The New York Times has reported. The eurozone is comprised of the 16 nations that use the euro as currency.

The Times further said that the plan emerged from a meeting between German Chancellor Angela Merkel and French President Nicolas Sarkozy. But it needed firming up, which was expected later in the day during a meeting with other European leaders.

It is said that Greece need about $29.2 billion, as its government debt has reached 12.7 percent of the country's gross domestic product. (With Inputs from Agencies)