Japanese lawmakers will decide on Monday whether Prime Minister Shigeru Ishiba remains the country's leader after his scandal-tarnished coalition lost its parliamentary majority in a lower house election late last month.

According to the Japanese constitution, Ishiba's current cabinet has to resign when the Diet, the country's parliament, convenes for a special session that must be held within 30 days of a general election. Both houses will hold a fresh vote to select a prime minister.

Ishiba resigned with his cabinet early Monday ahead of a parliament vote scheduled for later in the day.

To win, a party leader must be nominated by a majority of lawmakers in the lower house and the House of Councillors. If an agreement cannot be reached between both houses, the constitution stipulates that the lower house's decision takes precedence.

If no candidate receives more than half of the votes in the first round, the vote goes to a runoff between the top two candidates. The lawmaker that gains the most votes is declared the winner.

As the ruling bloc of Liberal Democratic Party (LDP) and Komeito holds less than a majority in the House of Representatives, Monday's vote is likely to head to a runoff between Ishiba and major opposition Constitutional Democratic Party leader Yoshihiko Noda.

The last time a second-round vote was needed was 30 years ago.

If Ishiba is elected, he will form a second cabinet. If the parliament chooses a new leader, Ishiba's tenure as prime minister will be the shortest since World War II.

Ishiba took office in early October and called a snap election which he hoped would shore up his mandate as the leader of the ruling LDP. However, this gamble saw Ishiba's scandal-hit party lose its parliamentary majority that it held since 2012.

While the conservative LDP and its junior coalition partner Komeito lost their majority in the general election, they remain the largest bloc in parliament's powerful lower house and have since been jockeying to form government with the support of minor parties.

The small opposition Democratic Party for the People (DPP) has emerged as a kingmaker after the election, declining to enter a formal coalition with the LDP but saying it may offer support on a policy-by-policy basis.

DPP chief Yuichiro Tamaki told reporters on November 8 that party members would not vote for Ishiba during Monday's special parliamentary session.

"Until now the LDP and Komeito have been able to push their policies through and they are no longer able to do that, they have to listen to the opposition parties," he said.

In talks with the LDP, the DPP has demanded tax cuts and energy subsidies that economists say would significantly reduce the government's tax revenues.

Approval ratings for Ishiba's government are just above 30 percent, but polls show a majority of the public say he should remain prime minister.

The most imminent challenge he faces is compiling a supplementary budget for the fiscal year through March, under pressure from voters and opposition parties to raise spending on welfare and measures to offset rising prices.

"In order to stay in power, Ishiba needs to pass the government budget this winter. It will mean the LDP will have to concede some of its policies to seek cooperation from others," said Tomoaki Iwai, professor emeritus at Nihon University.

(With input from agencies)