The two coalition partners and the main opposition party agreed Monday on the details of a bill that would allow the government to impose unilateral economic sanctions on North Korea.
The move paves the way for the bill's enactment early next month, party lawmakers said.
The Liberal Democratic Party, its coalition partner, New Komeito, and the Democratic Party of Japan plan to submit the bill to the Diet immediately.
They expect it to pass the House of Representatives as early as Friday and the House of Councilors early next month, the lawmakers said.
The bill would revise the Foreign Exchange and Foreign Trade Law, allowing the government to impose economic sanctions without a U.N. resolution.
The government would be able to freeze assets and restrict cash remittances to and investments in North Korea in the interests of Japan's peace and security.
The measure is designed to pressure North Korea into resolving issues tied to its abduction of Japanese nationals and to address its nuclear arms development.
"It would be good to have various (negotiation) cards," Prime Minister Junichiro Koizumi told reporters at his office.
He added, however, that the government must give careful consideration to any decision that would actually see sanctions imposed.
The DPJ requested that the bill compel the government to specify the reasons behind any sanctions and for all sanctions to be approved by the Diet after being imposed, the officials said.
The ruling parties accepted the Diet approval condition, but said that the justification for sanctions would be specified in the runup to Diet approval. The DPJ eventually abandoned this condition, the lawmakers said.