Despite the setback that the ruling bloc suffered at the hands of the public in Sunday's election for the House of Representatives, top leaders of the Liberal Democratic Party and its coalition allies agreed Monday that Yoshiro Mori should stay on as prime minister.

Mori, president of the LDP, confirmed with his counterparts from New Komeito and the New Conservative Party that a special three-day Diet session to re-elect him as prime minister should be convened on July 4. Mori will form his new Cabinet the same day.

At a news conference Monday afternoon, Mori said he intends to reappoint Foreign Minister Yohei Kono and Finance Minister Kiichi Miyazawa to the Cabinet to prepare for the Group of Eight summit in Okinawa next month.