Japan's ruling party and main opposition have agreed to form an alliance, paving the way for Sanae Takaichito become the Asian nation's first female Prime Minister, local media reported on Sunday.

Takaichi — the leader of the ruling Liberal Democratic Party (LDP) — and Hirofumi Yoshimura — head of the smaller right-leaning Japan Innovation Party, known as Ishin — are set to sign an agreement forming a coalition on Monday, the Kyodo news agency reported, citing unnamed senior officials from both parties.

Takaichi's derailed bid for prime minister

Takaichi took the reins of the conservative LDP earlier this month after winning the party's presidency.

However, her chances to become Japan's premier were set off course after her ruling coalition came crumbling down with LDP's junior partner, the Komeito party, leaving after 26 years.

The collapse of the coalition had pushed Japan into political turmoil as a fragmented opposition made an unsuccessful bid to topple the LDP. 

The LDP has since been trying to seek a different partnership.

Ishin lawmakers will vote for Takaichi in an election to pick the prime minister in parliament on Tuesday, Kyodo reported.

The party is not planning to send ministers to Takaichi's cabinet initially, the news agency added.

Edited by: Rana Taha