Shinshinto, the largest opposition party, may postpone its scheduled Dec. 18 election to select a new party leader as negotiations with the Komei group remain stalled over Komei's decision to cancel its earlier plan to merge with Shinshinto, party sources said Thursday.

Incumbent Shinshinto leader Ichiro Ozawa was expected to announce his bid for a second two-year term as early as today, when the current extraordinary Diet session comes to a close. So far, only Lower House member Michihiko Kano has indicated that he will challenge Ozawa in the party race.

But confusion lingers over Komei's cancellation of the merger, and some aides to Ozawa are calling for the election to be postponed until the issue is resolved, the sources said. Ozawa held talks with Komei leader Tomio Fujii on Wednesday and Thursday but failed to dissuade him from canceling the union.

Kano said Thursday evening that any postponement of the election would "seriously damage public trust in the party."