© The TelegraphIf looks could kill! Greek Prime Minister Papandreou receives his marching orders from Merkel and Sarkozy as the EU's unelected "President" and his underling lurk in the background
Athens, Greece - The Greek prime minister has rejected pressure to resign, warning that early elections would lead to an exit from the euro, and says instead he is seeking talks with the opposition conservatives.

Two officials close to Prime Minister George Papandreou also say he has scrapped his plan to hold a referendum on the latest European debt deal for Greece after the main opposition leader said would back it.

They said Papandreou made the comments during an emergency Cabinet meeting Thursday. One also said the premier would not resign despite mounting pressure, and would await the outcome of Friday's confidence vote in his government.

They spoke on condition of anonymity to disclose talks in the Cabinet meeting, being held in Parliament.

Update: Ignoring increasing calls to step down, Greece's prime minister says he is seeking emergency talks with the opposition and warns that an early election would force Greece into leaving the euro currency.

Prime Minister George Papandreou made the comments in an emergency Cabinet meeting Thursday. His office released his speech to the ministers.

Papandreou sparked a crisis when he announced Monday he would put a European debt deal to a referendum in Greece. Two officials close to him say the referendum idea has now been scrapped, after the opposition indicated they backed the new bailout deal to cut Greece's debts.