"The two sides are converging," the official said after a meeting between IIF chief Charles Dallara, Greek Prime Minister Lucas Papademos and Finance Minister Evangelos Venizelos.

"The new bond will likely have a 30-year maturity and a grace period of 10 years. It will have a stepped-up coupon structure which will average out in the area of 4 percent," the official said.

(Reporting by George Georgiopoulos; Writing by Ingrid Melander)