By Jonathan Davies

The UK will not fund any part of Greece' bailout deal, the Chancellor George Osborne is understood to have told European finance ministers.

As finance ministers from all 28 EU countries meet in Brussels, Mr Osborne is believed to have said that using EU-wide funds for a 'bridging loan' was a "non-starter" and would breach an agreement that EU emergency funding would not be used to underwrite bailouts.

In 2010, Prime Minister David Cameron said it was 'clearly and unanimously' agreed that the European Financial Stabilisation Mechanism (EFSM) would not be used for any more eurozone bailouts, after it was used in Portugal's.

The agreement would mean that only eurozone member states would contribute to eurozone bailouts.

However, some parties are keen for the EFSM to be used. Martin Selmayr, chief of staff to European Commission president Jean-Claude Juncker has urged its use and France is understood to be "particularly keen".

"Our eurozone colleagues have received the message loud and clear that it would not be acceptable for this issue of British support for eurozone bailouts to be revisited," a Treasury source said, according to the Press Association.

"The idea that British taxpayers' money is going to be on the line in this latest Greek deal is a non-starter."

A Number 10 spokesman said: "Leaders from across the EU agreed in 2010 that the EFSM would not be used again for those in the euro area, and that remains the Prime Minister's view.

"We have not received a proposal and one is not on the table."