The blue chip index is seen opening flat on Monday, pausing after a four-day rally as investors are reluctant to build up their positions ahead of a deadline for Greece to accept a new bailout or face a messy default that would hammer the European financial system.

Greece must tell the European Union by Monday whether it accepts the painful terms of a new bailout deal amid reports of divisions within the country's ruling coalition and as EU patience wears thin with political dithering in Athens over implementing reforms.

The UK's FTSE 100 <.FTSE> index is expected to open 1 to 2 points lower, according to financial bookmakers, after rising 105 points to a seven-month closing high of 5,901.07 on Friday, recording its the best weekly performance in two months.

Boosting the index was a surprisingly strong U.S. employment report, which added to a sense the world' largest economy had a stronger-than-expected start to the year, fuelling expectations for global demand.

With the bullish news out of the way, traders may be wondering if the market can stand on its own with only excessive liquidity to drive it higher, James A. Hyerczyk, a technical analyst at Autochartist, said.

While Hyerczyk saw no immediate threat the uptrend, he warned the FTSE remained vulnerable to a sizable correction given the size of the rally from the recent bottom at 5,651.60.

The mining sector will be in focus on Monday as the Financial Times reports commodities trader Glencore International is set to offer a bigger-than-expected premium to seal its proposed $88 billion merger with global miner Xstrata Plc .

No major economic indicator is scheduled to be released in Britain or the United States on Monday.

(Reporting By Francesco Canepa; Editing by Hans-Juergen Peters)