The BBC is reporting that Papandreou will offer to resign in the next half hour.
They cite sources in Athens.
According to their report, he will offer a coalition government with former central banker Lucas Papademos.
The announcement will come on the heels of an emergency cabinet meeting.
Support for Papandreou has been diminishing since he proposed a referendum on the Greek bailout package Monday.
Austerity cuts have been poorly received by the Greek populace, but failure to go through with the bailout proposed last week would likely result in disorderly default and jeopardize the stability of the eurozone.
UPDATE: Dow Jones is reporting a contradictory story — that Papandreou will go ahead with the confidence vote scheduled for tomorrow. It is unclear (and ever more unlikely) that he will receive enough votes of confidence in his government.
But from another Dow Jones report (via @TradeDesk_Steve):
“I think the Prime Minister is coming to terms that he can’t carry on leading the country. He is looking into whether and how a national unity could be formed,” a cabinet minister close to Papandreou said.
“He may visit the President of the Republic to discuss this as early as today [Thursday],” he said
The minister also said Papandreou’s call for a referendum on whether the country should stay in the euro zone “is off the table.”
This follows earlier reports that he might withdraw his referendum proposal.