The New Conservative Party will disband and join the Liberal Democratic Party, party executives said Monday.
The NCP, the smallest force within the tripartite ruling coalition, suffered a crushing defeat in Sunday's general election, losing five of its nine seats, including that of party president Hiroshi Kumagai.
The party now holds seven seats in the two Diet chambers.
Once the merger takes place, the LDP will have a single-party majority in the 480-seat House of Representatives.
NCP Secretary General Toshihiro Nikai said Prime Minister Junichiro Koizumi proposed the idea Monday during a meeting of the leaders of the three-party ruling coalition, which also includes New Komeito. Koizumi is president of the LDP.
Nikai told a news conference: "Most of us once belonged to the LDP, including our former president and former prime minister (Toshiki
Kaifu). We would like to cooperate with the LDP with confidence."
"We have concluded that we should implement our policy pledges by merging with the LDP," the party said in a written statement.
The precursor of the party, known in English as the New Conservative Party, was established in 2000 by former members of the Liberal Party. These members chose to stay with the LDP-led coalition when Liberal Party president Ichiro Ozawa left the ruling bloc.
That party, Hoshuto in Japanese, was renamed Hoshishinto, literally the New Conservative Party, in December 2002 after five members of the Democratic Party of Japan, including Kumagai, joined.
It counts among its current members Kaifu, who is the party's supreme adviser, and former transport minister Chikage Ogi.
Responding to questions from reporters later Monday, Koizumi said he made the proposal to the NCP because he thought it was "a good thing."
