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Greece's Finance Minister Yanis Varoufakis sent a list of reform proposals to the euro zone at around midnight on Monday, just making a deadline set by its international creditors.
A Greek government source confirmed that the reform measures were sent to the Eurogroup of euro zone finance ministers for approval. They will also need to be approved by the so-called "troika" overseeing the country's bailout, made up of the International Monetary Fund, European Commission and European Central Bank.
A source close to the European Commission said they were "encouraged" by Greece's "strong commitment" to combat tax evasion and corruption, Reuters reported. These were among the proposals according to a list released by the Greek government's press office.
"In the Commission's view, this list is sufficiently comprehensive to be a valid starting point for a successful conclusion of the review,'' the source said, according to Reuters.
Other proposals included pledges to reform tax policy, consolidate pension funds and to eliminate incentives for early retirement. In addition, the proposals include plans to review and control public spending, and commitments not to roll back privatizations that have been completed.
The Athens Stock Exchange was trading up 5.5 percent Tuesday following the news.
Petros Doukas, the former deputy finance minister of Greece, welcomed what he called the new government's "U-turn" on previous pledges to scrap the bailout.
"It's definitely major progress...the Greek stock market is rallying to the tune of 6 percent so the market is receiving this news positively," he told CNBC in Athens Tuesday.
"The more the Greek government gets sucked into the European mainstream, the better the results will be for reform and for Greece getting over its problems and turning the page."
Doukas, who was a member of Greece's New Democracy party, which was ousted from power by Syriza in January's snap elections, added that there would need to be some kind of emergency funding for Greece over the next few months, however.
Whether countries like Germany will give the green light to Greece's reforms is yet to be seen, but Doukas said he believed neither Greece nor Germany had any choice other than to come to an agreement.
Euro zone finance ministers are expected to discuss the measures in a teleconference on Tuesday.
The proposals will then need to be worked into a full reform plan by the end of April, as agreed in a deal Friday between Greece and its international creditors, which gave the country a four-month extension to its current bailout.
If the reforms are approved, Greece will be one step closer to receiving a final tranche of aid which is crucial to keep its financial system afloat.
Adonis Georgiadis, a member of parliament for New Democracy, accused Syriza of "promising almost everything to everybody."
"I cannot see how the (bailout) program can function with these measures...Greece is in a very difficult position," he told CNBC in Athens Tuesday.
"The reality is that if we want to exit the crisis we have to fix the economy and this cannot be done with the things that (Prime Minister Alexis) Tsipras is saying."
He said that as Greece's lenders would withhold vital funds until they could see the government was serious about maintaining its bailout promises, Tsipras faced a "dead-end."
"All the risk is in Greece and there is a huge problem: if Mr Tsipras wants to keep the deal with the Europeans he had to vote for measures that will divide his party, and if he wants to not divide his party he will have to cheat the Europeans and not get the money, so it's a dead end," Georgiadis added.
- By CNBC's Holly Ellyatt, follow her on Twitter @HollyEllyatt. Julia Chatterley also contributed to this report.