Seiko Higa, mayor of Ginowan, Okinawa Prefecture, offered to resign Wednesday, one day after he was arrested for allegedly receiving illegal donations in a 2001 election.
The resignation, offered to the city government through Higa's lawyer, is expected to result in an April 27 mayoral election as part of nationwide local elections.
But Higa, 64, continued to deny any connection with the donations, police sources said.
Police searched his residence and offices Wednesday, including the mayor's office at City Hall.