The Greek government is set to announce a new round of austerity measures on Sunday in exchange for the EU and IMF funding, despite massive protests in the country against planned state cutbacks.

The measures include further increases in consumer taxes, and deeper cuts in pensions and public service pay, according to government sources.

The government, led by Prime Minister George Papandreou, will meet at 9:30 a.m. (0630 GMT) on Sunday to announce a deal with the European Union and the International Monetary Fund after days of marathon talks.

The deal on a financial bailout could be worth as much as 120 billion euros (160 billion U.S. dollars) over three years. Two thirds of the bailout will come from EU members while the rest from the IMF.

At the cabinet meeting, Finance Minister George Papaconstantinou will announce the austerity measures and then leave for Brussels where the 16 euro-zone finance ministers will meet at 4 p.m. (1400 GMT).

The government will submit the measures to parliament which is expected to approve them by Friday.

The government, the EU and the IMF wrapped up talks on Saturday as thousands of protesters took to the streets of Athens in May Day protests against the austerity measures.

The protesters held banners denouncing the EU and the IMF and chanted slogans such as "Take the measures back" and "We will not pay for the crisis others caused". They marched past the parliament building and the U.S. embassy in Athens.

After the protests ended, groups of young hooded people hurled rocks and Molotov cocktails at police, who retaliated with teargas in Exarchia, a central Athens district that has been the scene of many violent incidents in the past few years, particularly after the fatal shooting of a teenager by police in December 2008.

Setting dustbins and bus stops on fire and breaking windows of banks and a hotel, they created an image of chaos, albeit on a small scale.

A similar group of youths attacked, mostly verbally, the ex-president of the Greek Parliament, Apostolos Kaklamanis, who was taken to hospital to be treated for the shock.

Police detained at least nine protesters, including six suspected of looting a shop. Seven officers were injured along with two protesters.

The protesters said the austerity measures will hurt the poor and drag the country further into recession. Local union leaders warned May Day protests would be a prelude to a nationwide general strike on Wednesday.

According to an ALCO poll released on Friday by the newspaper Proto Thema, more than half of Greeks say they will take to the streets if the government agrees to new austerity measures.