Greek private lender Piraeus Bank announced on Tuesday that it has signed an agreement for the takeover of the entire network of three Cypriot banks operating in Greece for a total 524 million euros ($674.18 million).

The transaction for the acquisition of the more than 300 branches of Cyprus Bank, Cyprus Popular Bank (CPB) and Hellenic Bank in Greece, is part of international efforts to avoid a chaotic default in Cyprus with potential domino effect across the euro zone.

The deal "ensures the stability of the Greek banking system provides assistance to Cyprus in relation to the resolution of the crisis and secures depositors, customers and employees of the three Cypriot banks in Greece," Piraeus bank said in a statement.

The agreement was clinched through close coordination with Greek and Cypriot authorities and international lenders since last week.

It also paves the way for the reopening of all branches of the Cypriot banks in Greece as of Wednesday, for the first time since March 19 when all Cyprus banks closed amid negotiations for the bailout package which emerged this week.

Under Tuesday's deal all bank deposits in the Greek branches are not subject to any bank levy that has been agreed for the Cypriot banking sector in exchange for EU/International Monetary Fund rescue loans.

In regards to Greece's banking system which is under restructuring due to the Greek debt crisis, after the transaction Piraeus Bank, the third largest lender in the country, will have consolidated total assets of 95 billion euros, 1,660 branches and 24,000 employees, Greek national news agency AMNA noted.

"The transaction represents another important step towards the restructuring of the Greek banking system, in which Piraeus Bank has participated from the very beginning as a core pillar, contributing to the effort to rebalance the Greek economy," Piraeus Bank stressed in Tuesday's announcement.

Greece's banking sector is currently under a recapitalization process as part of a wider austerity and reform program endorsed by EU/IMF lenders under bailout deals struck after 2010, aiming to stave off financial collapse and possible turmoil in the euro zone due to the Greek crisis.