"The bailout has failed," Tsipras said in a speech to parliament.
Tsipras said that the government would seek a bridge loan agreement with the International Monetary Fund, the European Union and the European Central Bank to provide liquidity for the banking system until a new agreement could be made.
Bridge loans are loans which cover short transitional periods.
"A period of breathing space is necessary," Tsipras said.
But the leader of the Eurogroup, Jeroen Djisslebloem, has already ruled out any kind of bridge loan agreement.
"We don't do bridge loans," he told the press on Friday. He has already asked the Greek government to make an offer to prolong the bailout by Feb. 16 at the latest.
Greek banks are expected to run seriously short of funds if an agreement is not made within one month.