The firm may introduce a minimum 40% of hours to be spent in the office each month, and departments would have discretion within that limit.
The real estate company is preparing to make a tender offer of about ¥100 billion ($960 million), sources say.
Japan has driven a global revival in M&A activity in recent months, as the economy shows early signs of a recovery.
The move contrasts with those of other major banks such as Goldman Sachs Group Inc., which are resuming job cuts.
Net income at Morgan Stanley’s majority-owned securities venture with Mitsubishi UFJ Financial Group grew 5 percent, helping it beat rivals for the fourth straight year.
Despite a change in leader later this month, it has been suggested that Japan Inc. will continue down its current path.
The central bank doesn’t allow home computers to connect to its network for conducting asset purchases, raising concerns at financial firms as virus cases in Tokyo surge.
"A lot of people say we could face resistance in Japan because many may prefer transaction-based payment,” said Chie Toriumi, a senior managing director.
Shareholder activists are saying they have more than enough cash to weather the coronavirus pandemic and boost shareholder returns.
Transactions here and elsewhere in the Asia-Pacific will pick up before the U.S. and Europe do, experts say.