Voting was under way in Cyprus on Sunday in a left-right presidential runoff to elect a new leader to seal a crucial bailout for the EU state on the brink of bankruptcy.

Voting was under way in Cyprus on Sunday in a left-right presidential runoff to elect a new leader to seal a crucial bailout for the EU state on the brink of bankruptcy.

The vote, being closely watched in European Union capitals, pits rightwing opposition leader Nicos Anastasiades against Stavros Malas, who is backed by the communist party Akel in power during the island's economic downturn.

Clear frontrunner Anastasiades said he has sounded out foreign governments for a possible bridging loan for the public sector "to give us breathing space" to finalize the terms of a bailout.

Anastasiades, 66, favors a swift bailout agreement and says he accepts the harsh measures required to secure it, while Malas has campaigned on a pro-bailout but anti-austerity ticket.

The polls for the 545,000 Greek Cypriot voters on the divided island opened from 7:00 am (0500 GMT) and will close at 6:00 pm (1600 GMT), with the final result expected about an hour after the close.

Anastasiades took 45.46 percent of the vote in a first round on February 17, well ahead of the 26.91 percent polled by Malas, but short of the 50 percent required to secure an outright victory.

The election is seen as one of the most important since independence from Britain in 1960, and unlike previous polls on the normally affluent but divided island it has focused on the economy rather than reunification efforts.

The international community will also expect the next Greek Cypriot leader to pick up the pieces of a deadlocked UN push for reconciling both sides of the island.

Cyprus has been divided since 1974 when Turkish troops invaded and seized its northern third in response to an Athens-inspired coup aimed at uniting the island with Greece.