The Japanese cabinet resigned on Friday ahead of a planned reshuffle, sources said.
Foreign Minister Seiji Maehara, Finance Minister Yoshihiko Noda, Defense Minister Toshimi Kitazawa, national policy minister Koichiro Gemba, who also serves as the ruling Democratic Party of Japan (DPJ)'s policy chief, and internal affairs minister Yoshihiro Katayama will retain their posts, according to Kyodo News report.
DPJ Secretary General Katsuya Okada will also be kept, sources said.
Speaking at the DPJ's regular convention in Chiba City on Thursday, Prime Minister Naoto Kan said the reshuffle of his cabinet and the leadership of the Democratic Party would be carried out on Friday to create a strong team in a bid to reform the country.
Kan denied that the change was meant for replacing two cabinet members, including Chief Cabinet Secretary Yoshito Sengoku, who were censured last November by the opposition-controlled Upper House of parliament.
However, Kan has to garner opposition support to ensure the passage of a record 92.4 trillion yen (about 1.1 trillion U.S. dollars) budget for the 2011 fiscal year beginning April 1 by responding to opposition parties' call to remove the censured ministers from their posts.
Sengoku is believed to be replaced by Yukio Edano, who is current deputy secretary-general of the Democratic Party.
Kan has decided to appoint Kaoru Yosano, a former finance minister, as Japan's new minister in charge of economic and fiscal policies, reported Kyodo news agency early Friday.
Yosano, 72, a fiscal hawk and known advocate of raising Japan's 5 percent sales tax, said earlier that he will leave the country's newest opposition party he founded last year and join Kan's Cabinet.
"I want to devote the rest of my political life to Japan's future. If there is anything I can do, I want to help the government," Yosano said at a news conference after informing the Sunrise Party of Japan of his intention to leave.
He told local media Thursday he wanted to work towards restoring the country's fiscal health, reforming the social security system and promoting free trade.
Kan once reshuffled his cabinet after a victory at the presidential election of the DPJ last September.