Minsters agreed to extend maturities by 10 years on major parts of its total debt obligations.
Sources also added creditors are set to disburse €15billion (£13.1billion) to ease Athen’s exit from its financial rescue program.
One insider said: “We have a deal on Greece.”
Athens is set to leave its program on August 20.
The agreement is seen as vital in stabilising the Eurozone after almost 10 years of Greece required three bailouts and took the Euro to the brink of collapse.
German opposition on Greece’s debt relief was one of the reasons talks lasted over six hours.
Berlin is Athen’s biggest creditor.
A €86billion (£75billion) programme for Greece was agreed back in 2015 that took the tally of assistance received by Athens to €273.7billion (£239billion) since 2010.
Back then the deal took six months to achieve.
Greece will remain under watch of its creditors following the bailout.
Hartwig Loger, Austria’s Finance Minister, said: “We will ensure that the pressure to implement further reforms remains strong in the medium and long term.”
Figures emerged ahead of the bailout showing despite German fears its taxpayers would be left with the bill for the Greece crisis, Berlin has actually made money on the sums it had sent to Athens.
The German government released figures on Thursday showing the nation had made €2.9billion (£2.5billion) in interest payments on Greek bonds since 2010.
Original agreements between Berlin and Athens insisted any interest earned on bonds had to be paid back to Greece when it fulfilled reform obligations.
However, a report from online platform local.de showed the German government figures showed the nation made €3.4billion in interest payments on bonds and paid Greece €527million (£461million) in 2013 and €387million (£339million) the following year.
This means Berlin is therefore €2.5billion in profit.