Japan's largest opposition Constitutional Democratic Party of Japan (CDPJ) and Komeito have begun coordination with the possibility of forming a new political party, the Asahi Shimbun daily reported on Wednesday.

A senior CDPJ official said the two sides could make a decision as early as Thursday after consultations.

Many Japanese media outlets reported earlier that the two parties are considering deepening fundamental cooperation to broaden their support base and jointly challenge the administration of Japanese Prime Minister Sanae Takaichi in the upcoming House of Representatives election.

The leaders of the two parties held talks on Monday and agreed to pursue what they described as a "higher level of cooperation."

Komeito terminated its coalition with the Liberal Democratic Party (LDP) in October last year and shifted into opposition. While some local party organizations favor maintaining cooperation with the LDP, senior Komeito officials are leaning toward further strengthening their stance against the Takaichi administration.

Takaichi on Wednesday informed senior officials of the ruling coalition parties of her intention to dissolve the lower house when its regular Diet session convenes on January 23 and call a snap election.