“Transparent and open elections and a free and vigorous debate are more important than ever. The most obvious first step, to show that the LDP will change, is for me to step aside,” the PM was quoted as saying during a press conference by CNN.

“I have made the heavy decision with a strong desire to move forward with political reform, because the people’s trust is what makes politics work.”

The Liberal Democratic Party has been ruling the country for several terms since it was formed in 1955.

Some people within the party have raised doubt whether  Fumio Kishida would be able to the outfit to victory in the general polls next year.

Two of the most influential factions in the LDP have been accused of failing to properly declare their income and expenditure and, in some instances, allegedly rerouting political funds to lawmakers as kickbacks, CNN reported.

Kishida stepped in as PM of the country in 2021 when he replaced  Yoshihide Suga.

Suga served as the PM for a year after former PM Shinzo Abe stepped down in 2020 due to poor health.

Kishida started losing confidence among countrymen amid weakening of yen against the US Dollar.

Analysts have told the BBC that Japan is going through a "once-in-a-generation" political crisis as the ruling party fights to clean up its image.