The government is planning to set up a panel to look at ways to support child-rearing by working women in a bid to arrest the declining birthrate, sources said.

Prime Minister Yoshiro Mori instructed officials to start considering the creation of the panel under the Council for Gender Equality, to be created within the Cabinet Office when government ministries and agencies are reorganized Saturday in a sweeping overhaul, they said.

"The drop in the number of children is a concern for Japan's future," Mori told a news conference marking New Year's Day. "We plan to compile and carry out measures at an early date to support people who work and rear children."