Eurozone finance ministers say they won't consider Greece's request for a third bailout until after Sunday's referendum.

After a conference call this afternoon ministers say it's important to know whether the Greek people want to continue talks on a deal.

Earlier the Greek prime minister Alexis Tsipras appeared to rule out accepting any further austerity, despite writing to Troika leaders saying he would accept most of the conditions attached to previous offers.

Eurogroup president Jeroen Dijsselbloem says the Greek referendum on Sunday will now determine whether EU leaders will resume their talks with Greece:

However, Greek prime Minister Alexis Tsipras says the vote will not see Greece leave the Euro , but instead give him a mandate to secure a better deal from the EU.

Speaking on Greek national TV, Mr Tsipras called on Greek voters to reject plans which would see "the destruction of Europe".

Mr Tsipras has said his country will accept a bailout offer, but with several conditions.

A letter he wrote to creditors said that Greece will accept terms published by the European Commission on Sunday but with a number of amendments.

Greece wants to keep a reduced level of VAT for its islands, reduce the size of cuts to its military budget and delay the phasing out of a supplement for some retired people.

The move comes after Mr Tsipras previously rejected conditions that the creditors wanted Greece to meet in exchange for further bailouts.

The rejection led to Mr Tsipras calling the referendum, putting the proposals to a vote planned for Sunday.

Optimism that his offer to agree to a deal would result in a long-term solution was limited by German finance minister Wolfgang Schaeuble, who said it had brought no further clarity.

He said that, despite the letter, there was "no basis" for serious negotiations with Athens at the moment and no deal would be possible until after the referendum.

"First of all Greece must clarify its position on what it wants, and then we will have to talk about it, under conditions that are now far more difficult," Mr Schaeuble said in Berlin.

Eurozone finance ministers are due to look at Mr Tsipras' latest proposals at 5.30pm on Wednesday.

Another unnamed Eurozone official told Reuters: "There are still a lot of loose ends. I don't think the Eurogroup still believes those promises just like that."

If a deal is to be reached, Mr Tsipras wants to keep VAT in the Greek islands at 16%, compared to the level on the mainland at 23%.

The discount is in place to account for the added cost to residents of goods being shipped off shore, but could increase costs for tourists if abolished.

The letter also asked for a delay to an extension of individual business income tax, and a smaller cut in the military budget.

The Euro climbed against sterling, but investors remained cautious.

The Taoiseach Enda Kenny says he hopes a deal can be reached to make sure Greece stays in the Euro.

Mr Kenny says the Greek government has 'a responsibility' to come back to the table and begin more talks.

Sky News reporter Robert Nisbet is in Athens.

He says the leak of the letter to the Financial Times seems to show Mr Tsipras is prepared to go much further in accepting the conditions of Greece's creditors than he has until now.

Greece has defaulted on a €1.5bn repayment to the International Monetary Fund (IMF), becoming the first country to do so since Zimbabwe in 2001.

The deadline for Greece to make the payment formally expired last night.