Portugal's caretaker prime minister Jose Socrates has announced that agreement has been reached on a bail-out from the EU and the International Monetary Fund.
He says the three-year loan was a good agreement.
His office says that Portugal will ask for financial assistance worth 78 billion euros ($US116 billion).
The BBC reports officials from the European Commission, European Central Bank and IMF have been working on a deal for three weeks.
In a televised statement, Mr Socrates said that Portugal would be given more time to reach its budget deficit targets than had previously been expected.
Mr Socrates resigned as prime minister after failing to get austerity measures through parliament. There will be a general election on 5 June.
The deal still has to be endorsed by the main opposition parties.
Portugal is the third eurozone country to ask for a bail-out, after Greece and Ireland.
