According to reports in Greek media, Poul Thomsen, the IMF's Europe director told his executive board that negotiations were "not working" and he could not envisage a successful conclusion to the country's current bail-out.
The concerns come as voices in Athens have repeated threats to stop paying back their international creditors if no new bail-out cash is released.
A Greek official was quoted in the Financial Times saying: "We have come to the end of the road . . . If the Europeans won’t release bailout cash, there is no alternative [to a default]."
Mr Poulsen, who was part of the IMF delegation that met with Greece's finance minister earlier this month, also issued a warning about Greece's weak economic performance.
Greece avoided defaulting to the IMF last week, successfully paying back a €450m loan. However, the cash-strapped government faces another €200m payment on May 1 and another for €745m 11 days later.
The Leftist Athens government has also been forced to deny claims it was willing to hold a snap election to boost its ruling majority.
Greece's outspoken defence minister Panos Kammenos, who heads up the right-wing Independent Greeks party in coalition with Syriza, said the government had a mandate to rule.
"Even if elections take place, we will double our share of the vote," he told Greek TV. He added the government would not sign another austerity-dictating Memorandum should the current bail-out be completed in June.
Following its Easter bank holiday, Athens has now been given a provisional April 20 deadline to polish up a list of economic reforms it will need to implement before it can secure an injection of rescue cash.
Robert Kuenzel of Daiwa Capital markets said: "With the current reform list being based on largely untenable growth and revenue assumptions, Greece has only days to make a huge leap towards meeting official creditors’ expectations."
telegraph.co.uk
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