Mr Soros, who achieved world wide fame when he bet against sterling remaining within the Exchange Rate Mechanism in the 1990s, said that the 50pc "haircut" on private bond holders would only reduce Greek debt by 20pc. He said that was insufficient to stop an economic decline in Greece which would lead to greater social unrest.
His words come as the eurozone appeared to be heading for further economic trouble as investors started to express scepticism about the rescue deal announced in the early hours of Thursday morning. This weekend Goldman Sachs said that the eurozone countries were heading for a "mild recession" as confidence waned.
"Given the magnitude of the crisis it is again too little too late," Mr Soros said of the Brussels deal at a dinner organised by Pi Capital investor network on Thursday. "It will bring relief partly because the markets were so obsessed by the lack of leadership. The mere fact that something was achieved was a major relief and it will be good for any time from one day to three months.
"Unfortunately it is not the last crisis because the fundamental issues have not been settled. It is clear that the amount of debt that Greece has accumulated and is accumulating is untenable and the country is effectively insolvent."
Mr Soros argued that many banks might not voluntarily join the deal as they will want to wait for the insurance offered by the credit default swaps they hold against the debt to be triggered. At present because the haircut is voluntary European leaders have said the Greek default is not considered a "credit event" which would spark CDS payouts and possibly a new financial crisis.
The Telegraph
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