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The BBC's Mark Lowen on the "unbelievable amount of pressure" on Cyprus
Cypriot President Nicos Anastasiades is on his way to Brussels as his country continues to seek a last-minute deal to avoid possible bankruptcy.
The trip comes after a day of talks between Cyprus and the EU and IMF.
Cyprus needs to raise 5.8bn euros (£5bn) to qualify for a 10bn-euro EU bailout.
The EU's commissioner for economic affairs Olli Rehn said the island had only "hard choices left" and must agree terms on Sunday.
Cypriot leaders are struggling to agree how to raise the money.
'Very tight'Parliament rejected a bank levy on small and large deposits earlier this week, but a levy limited to large deposits is said to be back in consideration following pressure from Brussels and Berlin.
Cyprus needs the approval of the "troika" - the IMF, European Central Bank and European Commission - in order to present a rescue plan to eurozone ministers in Brussels.
The stakes are very high for Cyprus. If there is no agreement, the European Central Bank says emergency loans keeping the Cypriot banks afloat will be cut off after Monday.
They would be unable to operate. If it really came to that, Cyprus would probably have to issue its own currency - and not the euro - to maintain a functioning banking system. But it won't come to that if Cyprus can convince the rest of the eurozone that it will implement a package that's capable of raising the money they - the eurozone - think is needed.
There are some voices saying Cyprus should give up the euro. But the government is pulling out the stops to avoid that. Will it be enough to convince Germany, Finland and the other countries with voters weary of bailouts? It looks as though a long night beckons in Brussels.
If a deal on an alternative agreement fails, the European Central Bank (ECB) says it will cut off funds to the banks, meaning they would collapse, possibly pushing the country out of the eurozone.
"The negotiations are at a very delicate stage," said government spokesman Christos Stylianides. "The situation is very difficult and the time limits are very tight."
Mr Rehn said: "It is essential that an agreement is reached by the eurogroup on Sunday evening. This agreement then needs to be swiftly implemented by Cyprus and its eurozone partners.
"Unfortunately the events of recent days have led to a situation where there are no longer any optimal solutions available," he added.
He said it was clear that the near future for Cyprus would be "very difficult" but that the EU stood ready to help.
Media reports said Cyprus was considering a 20% levy on deposits of more than 100,000 euros (£85,000) in its biggest lender, Bank of Cyprus, and a 4% levy on deposits above the same level at other banks.
German pressureThe bank levy that was rejected last week would have taken 6.75% from small savers and 9.9% from larger investors.
It caused widespread anger among among ordinary savers in Cyprus.
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Olli Rehn: "The European Commission is working hard to facilitate a solution to help Cyprus"
There is concern on the island that a levy on large-scale foreign investors, many of whom are Russian, would damage its financial sector.
But leading Cypriot bankers have urged parliament to accept a levy, with small savers exempted.
Correspondents say Germany has pushed hard for a levy on investors who have benefited from high interest rates in recent years, rejecting a Cypriot plan to use money from pension funds.
Cypriot Finance Minister Michael Sarris travelled to Moscow this week in an unsuccessful attempt to get Russian help.
Banks in Cyprus have been closed since Monday and many businesses are only taking payment in cash.
On Saturday afternoon more than 1,000 bank employees marched to the Cypriot finance ministry, stopping briefly at the presidential palace.
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