Speculation in political circles that Prime Minister Yoshiro Mori will soon resign was rife Thursday as the embattled leader promised to make a "sensible decision" about his future amid a series of scandals that have rocked his administration.

"I have received encouragement and (criticism) from various quarters," Mori said in a House of Representatives Budget Committee session. "As a politician, I plan to make a sensible decision on what I must do now and what I must do in the future."

The comments were seen by some in the ruling bloc as an indication that Mori is prepared to resign after the fiscal 2001 budget clears the Diet in late March or early April -- a scenario favored by some coalition power brokers.

Mori's comments also followed sworn Diet testimony by former LDP lawmaker Masakuni Murakami over a widening political bribery scandal involving mutual-aid foundation KSD. Murakami was arrested later Thursday.

"It is a very significant comment," said Takenori Kanzaki, head of New Komeito, the larger of the ruling Liberal Democratic Party's two coalition partners.

Opposition parties are currently considering the best time to submit a no-confidence motion against Mori's Cabinet. Some opposition members favor submitting the motion before the fiscal 2001 budget clears the Lower House, which is expected today.

But Mori later denied his comments suggest he is ready to leave.

"I was talking about policies," he told reporters at his official residence. "It had nothing to do with (a resignation decision)."

Mori has been facing resignation calls from ruling bloc lawmakers who fear they will take a beating in July's House of Councilors election if the unpopular leader remains in office.