Merkel told reporters on Sunday that she welcomed Athens agreeing to a plan and would present the legislation to her Cabinet on Monday.
She said would push Germany's parliament to pass legislation needed to free up funding for the bailout by Friday.
THIS IS A BREAKING NEWS UPDATE. Check back soon for further information. AP's earlier story is below.
Under the plan, the other 15 EU countries that use the euro will extend loans to Greece, as will the IMF. Germany will be the largest contributor but has been reluctant to release funds without Athens taking further austerity measures — a move that Greece took Sunday. Berlin needs to pass the issue through parliament before it can approve activating its part in the rescue.
Wolfgang Schaeuble said that "we have good chance to finalize the legislative process in Germany by Friday." He made the comments as he arrived for an emergency meeting of eurozone finance ministers to discuss the plan.