European leaders are prepared to accept that Greece should default on some of its bonds as part of a new bailout plan for the country that would put its total debt levels on a sustainable footing, the Financial Times reported, citing unnamed senior officials.

The new plan, to be discussed at a meeting of euro area finance ministers Monday, could also include new concessions by European lenders to reduce Greece’s debt, including further lowering interest rates on bailout loans and a broad-based bond buyback program, the FT said.