Greece has not managed to reach a deal with its creditors at the latest Eurogroup meeting in Luxembourg, and officials said they would hold a new summit on Monday.
Valdis Dombrovskis, the European Commission vice-president for the euro and social Dialogue, shared his report on the Greek debt discussions over Twitter:
Euro zone finance ministers were meeting in Luxembourg for a session that had been billed as the final chance to reach a cash-for-reform deal.
Greece owes the International Monetary Fund 1.6 billion euros ($1.8 billion) by the end of June. It has not been able to reach a deal for austerity measures and pension reform that would satisfy creditors.
Following German media reports Thursday that creditors have offered Greece an extension, markets rose slightly on the news. Those hopes, however, were quickly dashed by diplomats.
Germany's Die Zeit newspaper reported in its online edition on Thursday that Greece's creditors planned to offer to extend its existing aid program until the end of this year, but without the participation of the International Monetary Fund.
European diplomats, however, subsequently denied the report to Reuters.
"This has nothing to do with reality and such a proposal would definitely not fly," one diplomat said.
Without citing sources, the newspaper said the remaining 10 billion euros ($11.4 billion) earmarked in Greece's existing program for bank recapitalization should be used to settle its liabilities with the European Central Bank (ECB) and the IMF.
A spokesman for the German government declined to comment to Reuters about the report. The finance ministry was not immediately available for comment.
U.S. bond yields touched session highs following those German reports, and the euro pared some of its gains against the dollar. Yields fell and the euro rose after the diplomats' denial.
Meanwhile, Greek Finance Minister Yanis Varoufakis presented new proposals to fellow euro zone finance ministers meeting in Luxembourg, a Greek government official said on Thursday, without giving any details.
"Varoufakis is presenting new ideas right now," the official said. "The proposals are based on fiscal consolidation that needs to go with debt sustainability."
—CNBC's Everett Rosenfeld and Reuters contributed to this report.