The country’s government is mulling “a velvet restructuring” that would include the extension of outstanding debt and a voluntary agreement with lenders to modify the terms of repayment, newspaper Ta Nea said, without citing a source.

According to newspaper Isotimia, the government might seek to extend the maturities of its total oustanding debt by an average of five years. This would happen after an agreement with its lenders, the newspaper said, citing government sources.

No final decision to propose such a solution has been taken yet and discussions were still at an informal level, Isotimia said without elaborating.

Both reports come in spite of repeated, official denials that Greece, the first country to obtain an EU/IMF bailout last year, will seek any kind of debt restructuring or extension of its debt.

Finance Minister George Papaconstantinou said on Wednesday the country was still planning to issue bonds by early 2012, betting that a Portuguese bailout this summer and reforms at home will calm markets that are increasingly factoring in a debt restructuring.

Greece has been shut out of financial markets in the wake of its debt crisis last year. Papaconstantinou said on Wednesday he considered Greece’s debt — expected to hit about 160 percent of GDP in 2012 — “totally sustainable” and that restructuring was not an option.