Former Greek Prime Minister George Papandreou announced his decision to stand down as ruling socialist PASOK party leader and not run for premiership in the coming early general elections, local media reported on Wednesday.

Two months ago Papandreou stepped down as Premier, paving the way for an interim coalition government to push through a critical deal with international creditors to stave off a Greek bankruptcy.

On Wednesday afternoon he told a party meeting that is still underway that he made the decision aiming to "safeguard the transitional administration's unity," according to Greek media reports citing PASOK sources.

The party's candidate for premiership in the snap polls due to be held in spring could be elected by February, according to early information and Papandreou's successor at the party's helm could be elected in June.

The former premier was under mounting pressure for a change in leadership within the party as well over the past few weeks over his handling of the debt crisis that has brought Greece to the brink of default since late 2009.