Washington: US President Barack Obama and German Chancellor Angela Merkel agreed in talks on Tuesday on the need to resolve the euro zone financial crisis for the good of the global economy, the White House said.

The two leaders discussed the euro zone crisis on telephone two days ahead of a crucial European summit on how to formulate a second rescue package for Greece, which it is feared could default on its 350-billion euro (USD 500 billion) debt.

"The President spoke with German Chancellor Angela Merkel this morning on telephone about the Euro zone crisis in advance of the European Council meeting on July 21," the White House said in a statement.

"They agreed that dealing effectively with this crisis is important for sustaining the economic recovery in Europe as well as for the global economy."

Merkel on Tuesday warned that the talks might not produce a dramatic, all-encompassing solution to the problem, which has left markets worried that Athens could default and spark a chain reaction throughout Europe's weakest countries.

Obama also congratulated Merkel for Germany's hosting the Women's Soccer World Cup over the past month. Japan defeated the favored US team in the final on Sunday.