Over 6 hours of talks between the eurozone nations leaders broke up with summit chair, EU president Donald Tusk, tweeting that there had been unanimous agreement on a programme that included "serious reforms" and "financial support."
At a news conference, he described it as an "agreekment".
The details of the package were yet to be fully released but it included the creation of a €50bn asset fund by Greece.
This money would be partly used to help recapitalise the country's banks.
However, the deal in Brussels still faces a number of hurdles if it is to be enacted.
They include a Greek parliamentary vote to ratify the package either tomorrow or on Wednesday.
Those include a Greek parliamentary vote to ratify the package.
Support for the deal, which includes more austerity, would then allow other national parliaments to carry out their own votes and for bailout talks to progress.
Nevertheless, stock markets rose across Europe with the German DAX and CAC 40 in France up more than 1% in early deals.
However, the tough conditions imposed by the international lenders still have the potential to bring down the deal and the Greek government.
Even before the terms were known, prime minister Alexis Tsipras' labour minister denounced the terms on state television.
The asset fund will be made up of publicly-owned firms to be sold off - a privatisation programme fiercely opposed by members of the governing Syriza party.
Support for the deal, which includes more austerity, would then allow other national parliaments to carry out their own votes and for bailout talks to progress.
Nevertheless, stock markets rose across Europe with the German DAX and CAC 40 in France up more than 1% in early deals.
However, the tough conditions imposed by the international lenders still have the potential to bring down the deal and the Greek government.
Even before the terms were known, prime minister Alexis Tsipras' labour minister denounced the terms on state television.
The asset fund will be made up of publicly-owned firms to be sold off - a privatisation programme fiercely opposed by members of the governing Syriza party.
Solidarity among member states
German chancellor, Angela Merkel, said that theere would not be any writing down of debt and that the deal would affect pensions and prompt privatisation among other reforms.
"I think we found ways where it's true what I have repeatedly said, that advantages clearly dominate disadvantages," said Merkel.
"The basic principles which we always followed to rescue the euro are there, namely on the one side solidarity among member countries, and on the other side the responsibility of the country where changes need to take place."
Merkel said that the deal was reached despite the recent losss of "the most valuable currency, namely trust in each other".
PM Tsipras agreed to tough reforms after 17 hours of gruelling negotiations in return for a three-year bailout worth up to 86 billion euros ($96bn), Greece's third rescue programme in five years.
Greece applied last week for a third programme from the eurozone's bailout fund, the European Stability Mechanism, after its previous bailout expired on June 30, leaving it without international financial assistance for the first time in years.
