Japanese Prime Minister Fumio Kishida announced on Wednesday that he will not run in the ruling Liberal Democratic Party's (LDP) presidential election next month, signaling that the nation will see a new prime minister this fall.

"Politics cannot function without public trust. I made this heavy decision thinking of the public, with the strong will to push political reform forward," he said at a press conference.

"In this election, it is necessary to show the people that the LDP is changing and that the party is a new LDP," Kishida told reporters.

"For this, transparent and open elections and free and vigorous debate are important. The most obvious first step to show that the LDP will change is for me to step aside. I will not be running in the forthcoming presidential election," said Kishida.

Kishida was elected party president in September 2021 for a three-year term and won a general election shortly afterwards.

However, his ratings started to slide rapidly after he took office in 2021 following revelations about the LDP's ties to the controversial Unification Church. His popularity took a further hit as a slush fund of unrecorded political donations made at LDP fundraising events came to light.

Kishida also faced public discontent over the failure of wages to keep pace with rising living costs as the country finally shook off years of deflationary pressure.

Who could be next LDP leader?

The LDP will hold a contest in September to replace him as president of the ruling party, and by extension, as the prime minister of Japan.

Former defense minister Shigeru Ishiba has already thrown his hat into the ring as a prospective replacement for Kishida, saying he would like to "fulfill his duty" if he gathers enough support, according to public broadcaster NHK.

Other names that have been floated as potential contenders include Foreign Minister Yoko Kamikawa, Digital Minister Taro Kono, and former Environment Minister Shinjiro Koizumi.

Experts say that the LDP will have to pick a fresh face that breaks from the scandals that have mired the party recently to survive a general election, which is due by the third quarter of 2025 at the latest.

"If the LDP picks its next leader in a way that disregards public criticism against political funding scandals, the party could suffer a crushing defeat," political analyst Atsuo Ito said.

"The party must choose someone young who has no ties with the present administration and thus can present a new LDP," he added.

(With input from agencies)