Germany and France have reached a common position on a second bailout of Greece in their effort to prevent the country's debt crisis from spreading through Europe.

The accord came after seven hours of talks late into Wednesday night between the German chancellor and the French president in Berlin, sources in both governments said on Thursday.

Details of the common position were not revealed, but the French delegation said it would include a contribution to the Greek bailout by Europe's banking sector.

AJE's Paul Brennan reports on from Athens on the Greek debt crisis.