The government said Tuesday it will approve within the month applications filed by two local governments to allow stock companies to set up a university and the equivalent of a university graduate course, paving the way for such educational institutions to open next spring.

The applications to allow Tokyo Legal Mind K.K. to set up a university and Digital Hollywood Corp. to set up the graduate course equivalent were filed by Tokyo's Chiyoda Ward and the Osaka Municipal Government, government officials said.

Tokyo Legal Mind runs a network of cram schools to prepare university students and graduates to pass the bar examination, while Digital Hollywood runs schools offering courses on computers and information technology.