Leaders in Japan's ruling coalition have decided Prime Minister Yoshiro Mori will step down in early April.
Mr Mori will leave after next fiscal year's budget passes Parliament.
A time-table for his fall was agreed between his Liberal Democratic Party and the chiefs of two junior coalition partners.
The Asahi Shimbun newspaper says Yoshiro Mori is likely to announce his resignation on March 13 at the LDP convention.
A leadership election to replace him will be held in early April.
The report comes as Mr Mori's popularity sank to 6.5%. His government has been battered by a constant stream of scandals and the premier's own verbal gaffes.